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Me too Yesterday with help from support I was able to resolve my VPN problem since the latest update to Parallels 5 now I'm having video problems...
I followed the instructions in the link provided but at this step "On the Mac, chose VPN as the interface. Choose Cisco IPSec as the VPN type"...
Having same problem I'm having exactly the same problem - can you elaborate on "Could you please try embedded in Snow Leopard VPN client?" How...