how to set up vpn on cisco router

Your config would look something like this:
!
logging buffered 4096 debugging
aaa new-model
!
!
aaa authorization network vpn-clientgroup local
aaa session-id common
!
<SNIP>
!
ip subnet-zero
!
!
no ip domain-lookup
!
ip audit notify log
ip audit po max-events 100
ip ssh time-out 120
ip ssh authentication-retries 3
!
crypto isakmp policy 1
encr 3des
authentication pre-share
group 2
crypto isakmp client configuration address-pool local dynpool
!
crypto isakmp client configuration group vpn-clientgroup
key *REMOVED*
pool dynpool
acl 111
!
!
crypto ipsec transform-set transform-1 esp-3des esp-sha-hmac
!
crypto dynamic-map dynmap 1
set transform-set transform-1
!
!
crypto map dynmap isakmp authorization list vpn-clientgroup
crypto map dynmap client configuration address respond
crypto map dynmap 1 ipsec-isakmp dynamic dynmap
!
!
!
!
interface Loopback0
description Management Loopback address
ip address *REMOVED*
!
interface Ethernet0
ip address *PUBLIC ADDRESS REMOVED*
half-duplex
crypto map dynmap
!
interface FastEthernet0
ip address *PRIVATE ADDRESS REMOVED*
speed 100
!
ip local pool dynpool *ADDRESS RANGE REMOVED*
ip default-gateway *PUBLIC ADDRESS REMOVED*
ip classless
ip route 0.0.0.0 0.0.0.0 *PUBLIC ADDRESS REMOVED*
ip route 10.0.0.0 255.0.0.0 *PRIVATE ADDRESS REMOVED*
ip route *REMOVED*
no ip http server
ip pim bidir-enable
!
!
logging trap debugging
logging source-interface FastEthernet0
logging *REMOVED*
access-list 111 permit ip *REMOVED* *REMOVED*
access-list 111 permit ip *REMOVED* *REMOVED*
no cdp run
!

>>so I can use the cisco vpn client software to connect to my home network

Did you mean *from* home network?

Also is the router on dhcp in wan side? Confirm.

Cheers,
Rajesh

I am trying to connect to my home network where I have built my cisco router