Windows 7 VPN Blocked at Watchguard

Environment: Watchguard Firebox x700 running firebox release "pandora" (Driver version 7.5.0 B2063)

Client is running Windows 7 Home Premium with WatchGuard VPN client 10.10 (I think?)

Symptoms:
Client clicks the connect button on the VPN client. After a brief wait, client displays the message:
"Cannot connect to gateway (waiting for msg 2)."

Log snippet from VPN client:

5/16/2011 8:40:08 AMMONITOR: Installed - WatchGuard Mobile VPN 1010 Build 59 (910)
5/16/2011 8:40:08 AMMONITOR: Licensed - WatchGuard Mobile VPN 1010
5/16/2011 8:40:13 AMIPSec: Start building connection
5/16/2011 8:40:13 AMIke: Outgoing connect request AGGRESSIVE mode - gateway=xx.xx.xx.xx : jsmith
5/16/2011 8:40:13 AMIke: XMIT_MSG1_AGGRESSIVE - jsmith
5/16/2011 8:40:42 AMERROR - 4021: IKE(phase1) - Could not contact Gateway (No response) in state <Wait for Message 2> - jsmith.
5/16/2011 8:40:42 AMIke: phase1:name(jsmith) - error - retry timeout - max retries

End snippet

Firewall log shows my user's IP being blocked:

User's IP is yy.yy.yy.yy. Firewall IP is xx.xx.xx.xx
05/16/11 10:11:18 kernel Temporarily blocking host yy.yy.yy.yy 581498
05/16/11 10:11:18 firewalld[132] deny in eth0 52 udp 20 115 yy.yy.yy.yy xx.xx.xx.xx 38473 53916 (default)
05/16/11 10:11:18 firewalld[132] deny in eth0 52 udp 20 115 yy.yy.yy.yy xx.xx.xx.xx 38473 53917 (blocked site)
05/16/11 10:11:18 firewalld[132] deny in eth0 52 udp 20 115 yy.yy.yy.yy xx.xx.xx.xx 38473 53918 (blocked site)
05/16/11 10:11:18 firewalld[132] deny in eth0 60 udp 20 115 yy.yy.yy.yy xx.xx.xx.xx 38473 53915 (blocked site)
05/16/11 10:11:40 firewalld[132] deny in eth0 52 udp 20 115 yy.yy.yy.yy xx.xx.xx.xx 38474 53999 (blocked site)
05/16/11 10:11:40 firewalld[132] deny in eth0 52 udp 20 115 yy.yy.yy.yy xx.xx.xx.xx 38474 54001 (blocked site)
05/16/11 10:11:40 firewalld[132] deny in eth0 52 udp 20 115 yy.yy.yy.yy xx.xx.xx.xx 38474 54000 (blocked site)
05/16/11 10:11:40 firewalld[132] deny in eth0 52 udp 20 115 yy.yy.yy.yy xx.xx.xx.xx 38474 54002 (blocked site)
05/16/11 10:11:40 firewalld[132] deny in eth0 60 udp 20 115 yy.yy.yy.yy xx.xx.xx.xx 38474 53999 (blocked site)

Glad to provide setup specs for VPN and/or firewall rules. First time I've run into this problem, but also the first time I've tried to set up with a windows 7 client.