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The easy way you can solve that problem for the IOS router is to create another ACL . I've done and it work fine.Example 172.16.1.0 is the network address of hosts behin the IOS Router 192.168.10.0 is the network address of hosts behin the PIX Firew...
You need to use the T train ver of the IOSFor example for the 7200 router use c7200-ik9o3s-mz.122-8.T5.bin and for the 2600 router usec2600-ik9o3s-mz.122-8.T5.bin Hope this will help youTMM
Could you please post the whole router config I may be able to help. I had set up the same type of vpn connectivity for my client and can vpn into it and do telnet. So if you can post the whole router config it can helpful.TMM