I followed these instructions on www.hottonetworking.com to set up VPN on a clean install of Windows Server 2008 SP2 (not R2 yet).

When I then establish a VPN connection to that machine from a client machine (running Windows 7 RC), everything succeeds (it seems since I get a 'Connected' state in the network sharing center window), but I end up with a subnet mask (according to ipconfig /all) of 255.255.255.255 instead of 255.255.255.0. The net effect is that I don't have local network or internet capability.

What additional configuration steps do I have to do to get VPN with the proper subnet mask working?

Update: Using the steps outlined in the Technet article mentioned by Mr. Nimble, I was able to get internet connection. Apparently the subnet mask is not an issue as my coworker was able to connect using his VPN connection and ping the server machine by name as well.