Android VPN not Connecting with Encryption

We are trying to connect some Android 2.3 phones to our SBS 2003 server through VPN.  The phones will connect to the VPN, but only with the PPTP Encryption option unchecked, and what is the point in that?

I want to know why can the iOS devices and PCs connect correctly, but Android always pops back saying,

"Server negotiation failed.  The server may not agree with your encryption option. Do you want to check your encryption setting?"

I am able to connect to a Server 2008 R2 VPN connection at a different site with no problems on the same phone.

Any ideas on how to get this going with encryption would be appreciated.
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I would recommend using L2TP/IPsec as PPTP with encryption isn't exactly that secure anyway. Also, there is a bug in the Android VPN client with encryption negotiation so you might want to check what options you have for negotiating encryption on your VPN endpoint, and set them manually on the device and 2003 server to avoid negotiation.

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I will add one point, and it may not be relevant to this issue, but many smart phones have problems with passwords over 10 characters. Just FYI.
dkuhlmanAuthor Commented:
I ended up using an L2TP VPN and this connected without any problems.  Thanks for the advice on that.
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