Windows XP, connectoid not returning any “verifying username and password”?

Windows XP SP2, built-in Network Connections VPN connectoid fails to show “verifying username and password?” message.

I am able to ping the VPN from Windows and DOS, but the connectoid just hangs, eventually giving an error 800, even with AntiVirus removed and firewall disabled.

It should give the “verifying…” message.

This works fine on a parallel XP installation but not on the current one. I have tried a Repair using the original XP Setup CD, with no improvement.

Any help is warmly appreciated!

Thank you!