How can you achieve compression so that the Win client confirms that when you go to Status -> Details on the connection?
I have not looked into it much but I think that different Windows versions support different compression schemes. Win9x supports STAC, if I'm correct. There's also MPPC but it too is patent encumbered (http://www.polbox.com/h/hs001/). Fortunately your country does not seem to have these silly software patent laws.
> PS: I tried "deflate" in options.l2tpd but didn't work.
You could also try bsdcomp.
I think it's all in ppp, isn't it?
Just like encryption, you can do it at any layer. For instance, analog modems support compression (V.42b) but in your case this won't help much because you cannot compress encrypted data.
Also, I think compression can be done at IPSec level, but I am more interested that the clients see they have compression :)
As a customer I would rather be interested in getting the best speed :-).
IPsec compression (IPCOMP) might be more efficient because it is in the kernel and you are also compressing the PPP and L2TP headers. But IPCOMP is difficult to enable in the Microsoft L2TP/IPsec clients and I have read that there are sometimes incompatibilities between implementations.
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