Interesting that it was working, when you upgraded to version 17 it stopped working, and works again if you revert to the earlier version. Also interesting that it worked for a while after upgrading, which I find very puzzling. When an upgrade changes something that breaks connectivity I expect the impact to be pretty immediate. Very odd that it works for two weeks and then breaks.
In looking at the config of the sophos can you identify anything that changed with the new version?
Do you know whether the problem is impacting the ISAKMP or the IPSEC processes? I am not optimistic about it but I would suggest running debug for crypto on your cisco (probably both ISAKMP and IPSEC) and see if it provides any insight. Does the sophos have tools for investigating this issue?
HTH
Rick
HTH
Rick