Hi Vinod,
I do not have any updates. For now, I disable the firewall from Remote Desktop thru vpn and enable it when I'm done. Kind of work-around.
Like I'd mentioned, everything (ping, tracert, dns lookup) works only web browsing doesn't work. From the log messages, looks like Mcafee on vpn server is blocking the reply tcp packets sent by the website to the vpn client.
I was hoping somebody could try winxp vpn over Mcafee. Anybody with two WinXp boxes can set it up. It only takes few clicks and there is no software to install since vpn is builtin Winxp. The links above has clear screen-shots. Just leave the 'Use default gateway on remote network' checked in order to use vpn server's internet. That way we can be sure if it is just my setup. I have tried it in another setup but it is same McAfee firewall version with same results.
Thanks again for pursuing this!
Warm Regards,
Jennifer