VPN

I am new to networking, I just completed a class on Win2K server, and active directory…I am trying to setup a VPN by the book, with a friend that lives several hundred miles away…He has Win2K server, and I have Win2K Pro…We can make a connection and his PC sees me, and accepts my username and password, I see a connection at my end, with all the connection info such as time, compression rates on both up and down…The problem is we can’t see each others computers…I even shared my drives,and so did he…What are we missing or not doing right…
Please help…