IPSec enabled NIC’s

I’m using Intel Pro 100s adapters on my network. When I enable encrytion using IPSEC and Intel’s Packet Protect software on my Win98SE workstations, logon fails for that workstation. When the IPSec option is disabled, everything is fine. The netware5.1 server I’m trying to communicate with does not require encrytion and does not have the Intel card in it. I’m also using ZenWorks to distribute applications to my users. I’ve tested this with a Windows 2000 pro workstation and everything works fine because the Intel packet Protect is not used. Has anyone ever encountered this and solved this?