Cisco VPN connection fails

hello,

I am trying to configure a Cisco 857 router to accept VPN connections from home.

however i think the reason this is not working due to a missing command.. but as i don't know cisco too well so i could be wrong.

this is where i think the missing command is missing from:

interface Virtual-Template1
 ip unnumbered FastEthernet0
 no ip redirects
 no ip unreachables
 no ip proxy-arp
 ip nat inside
 ip virtual-reassembly
 peer default ip address pool defaultpool
 ppp mtu adaptive
 ppp authentication ms-chap ms-chap-v2
 ppp eap local

missing: 'ppp encrypt mppe auto' (this is not available in the ISO)

when i try and connect  to the router with the VPN i get the following error:

error 742: The remote computer does not support the required data encryption type

is the 'ppp encrypt mppe auto' required to connect with VPN?
is there a work around?
would the missing command give the error above?

Regards,