PPTP VPN with MPPE Encryption not working in Windows 7

[Joseph E Spoon]

My Config:

vpdn enable
!
vpdn-group 1
! Default PPTP VPDN group
 accept-dialin
  protocol pptp
  virtual-template 1

!

interface Virtual-Template1
 ip unnumbered GigabitEthernet0/1.100
 ip nat inside
 ip virtual-reassembly
 peer default ip address pool ippool
 no keepalive
 ppp encrypt mppe 128 required
 ppp authentication ms-chap ms-chap-v2

!

ip local pool ippool 192.168.100.201 192.168.100.210

!

aaa authentication ppp default group radius local

!

radius-server host 192.168.100.10 auth-port 1645 acct-port 1646 key XXXX

If I choose Optional Encryption on the Windows VPN client and change the ppp encrypt mppe option under the virtual-template to "ppp encrypt mppe 128" without the required I can get in.  If I do Required then it fails.  When I check the encryption on the Virtual Access interface it shows no encryption.

LST_R1#sho ppp mppe virtual-Access 3
MPPE not negotiated on Vi3

Any help would be much appreciated.

[Joseph E Spoon]

This turned out to be an issue with my IOS version.  I have a 2800 with 12.4 advanced IP services and it does not support this.  I tried it on a C800 router with 15.0 and it worked just fine.

Thanks