Hi, I am currently trying to provide one of our clients a vlan over a PPP link 
as per their request of only a layer 2 connection.
The connection would be like 3750g <--> 7200 <--> 1841 where the 7200 and 1841 
is a ppp link. In doing some research, we found L2TPv3 to be a viable option. 
However, I am having trouble keeping the tunnel up and sending traffic over it.

At the moment I am trying to configure only a simple layer 2 tunnel on test 
devices: 2 1841 routers, Version 12.4(15)T12, Advanced Services.

I am currently using these 2 sites as reference: 
http://prakashkalsaria.wordpress.com/2010/05/11/l2tpv3-over-hdlc-l2tpv3-over-ppp/,
 http://www.informit.com/library/content.aspx?b=Troubleshooting_VPNs&seqNum=44

On the other hand I was  also recently informed that there may be too much 
overhead in a layer 2 tunnel.  If that is the case, what is the more viable 
option for this setup?

I have attached the debug output from the tunnels as well. Any assistance would 
be appreciated.


Router#show l2tun                                                               
                                                                                
                                  
                                                                                
                                                                                
                                  
L2TP Tunnel and Session Information Total tunnels 1 sessions 1                  
                                                                                
                                  
                                                                                
                                                                                
                                  
LocTunID   RemTunID   Remote Name   State  Remote Address  Sessn L2TP Class/    
                                                                                
                                  
                                                           Count VPDN Group     
                                                                                
                                  
33146      0                        wsccrp 10.1.1.1        1     
l2tp_default_cl                                                                 
                                                 
                                                                                
                                                                                
                                  
LocID      RemID      TunID      Username, Intf/      State  Last Chg Uniq ID   
                                                                                
                                  
                                 Vcid, Circuit                                  
                                                                                
                                  
2130       0          33146      101, Se0/0/0         wt-cc  00:00:04 1         
                                                                                
                                  
Router#show l2tun                                                               
                                                                                
                                  
                                                                                
                                                                                
                                  
L2TP Tunnel and Session Information Total tunnels 1 sessions 0                  
                                                                                
                                  
                                                                                
                                                                                
                                  
LocTunID   RemTunID   Remote Name   State  Remote Address  Sessn L2TP Class/    
                                                                                
                                  
                                                           Count VPDN Group     
                                                                                
                                  
33146      0                        shutdn 10.1.1.1        0     
l2tp_default_cl                                                                 
                                                 
Router#show l2tun                                                               
                                                                                
                                  
                                                                                
                                                                                
                                  
%No active L2TP tunnels                                                         
                                                                                
                                  
Router#


Router#debug l2tp l2tun                                                         
                                                                                
                                  
L2TP L2TUN socket API debugging is on                                           
                                                                                
                                  
Router#                                                                         
                                                                                
                                  
*Jul  8 14:36:38.495: L2X  00001:_____:________: APP->L2TP: Session reopen,     
                                                                                
                                  
*Jul  8 14:36:38.495: L2X  00001:_____:________:            sock 0xB5000001     
                                                                                
                                  
*Jul  8 14:36:38.495: L2X  00001:_____:________:            serv 0x00000000     
                                                                                
                                  
*Jul  8 14:36:38.495: L2X  00001:_____:________:            data 0x656A2C98[92] 
                                                                                
                                  
*Jul  8 14:36:38.495: L2X  00001:_____:________:                                
                                                                                
                                  
*Jul  8 14:36:38.499: L2TP 00001:01005:0000B764: APP->L2TP: setup dataplane,    
                                                                                
                                  
*Jul  8 14:36:38.499: L2TP 00001:01005:0000B764:            sock 0xB5000001     
                                                                                
                                  
*Jul  8 14:36:38.499: L2TP 00001:01005:0000B764:            serv 0x00000000     
                                                                                
                                  
*Jul  8 14:36:38.499: L2TP 00001:01005:0000B764:            no serv hdl yet; 
use socket                                                                      
                                     
*Jul  8 14:36:38.499: L2TP 00001:01005:0000B764:                                
                                                                                
                                  
*Jul  8 14:36:45.495: L2TP 00001:01005:0000B764: APP<-L2TP: disconnect          
                                                                                
                                  
*Jul  8 14:36:45.495: L2TP 00001:01005:0000B764:            sock 0xB5000001     
                                                                                
                                  
*Jul  8 14:36:45.495: L2TP 00001:01005:0000B764:            serv 0x00001000     
                                                                                
                                  
*Jul  8 14:36:45.495: L2TP 00001:01005:0000B764: 

Router#debug xconnect event detail                                              
                                                                                
                                  
Xconnect detailed events debugging is on                                        
                                                                                
                                  
Router#                                                                         
                                                                                
                                  
*Jul  8 14:40:38.015: XC L2TP: uid:1[10.1.1.2/101] Event <Connect Timer 
Expired>, state Waiting for timer to connect -> Connecting                      
                                          
*Jul  8 14:40:38.015: XC L2TP: uid:1[10.1.1.2/101] L2TUN socket session connect 
requested                                                                       
                                  
*Jul  8 14:40:45.015: XC L2TP: Received L2TUN socket message <CDN - Session 
Disconnected>                                                                   
                                      
*Jul  8 14:40:45.015: XC L2TP: uid:1[10.1.1.2/101] Event <CDN - L2TUN Socket 
Session Disconnected>, state Connecting -> Connecting                           
                                     
*Jul  8 14:40:45.015: XC L2TP: uid:1[10.1.1.2/101] Event <Start Connect Timer>, 
state Connecting -> Waiting for timer to connect                                
                                  
*Jul  8 14:40:45.015: XC L2TP: uid:1[10.1.1.2/101]   with 50% jitter            
                                                                                
                                  
*Jul  8 14:41:11.443: XC L2TP: uid:1[10.1.1.2/101] Event <Connect Timer 
Expired>, state Waiting for timer to connect -> Connecting  

Router#show run                                                                 
                                                                                
                                  
                                                                                
                                                                                
ip cef                                                                          
                                                                                
                                  
!                                                                               
                                                                                
                                  
!                                                                               
                                                                                
                                  
pseudowire-class pswire                                                         
                                                                                
                                  
 encapsulation l2tpv3                                                           
                                                                                
                                  
 ip local interface Loopback0                                                   
                                                                                
                                  
!                                                                               
                                                                                
                                  
!                                                                               
                                                                                
                                  
interface Loopback0                                                             
                                                                                
                                  
 ip address 10.1.1.1 255.255.255.255                                            
                                                                                
                                  
!                                                                               
                                                                                
                                  
interface FastEthernet0/0                                                       
                                                                                
                                  
 no ip address                                                                  
                                                                                
                                  
 shutdown                                                                       
                                                                                
                                  
 duplex auto                                                                    
                                                                                
                                  
 speed auto                                                                     
                                                                                
                                  
!                                                                               
                                                                                
                                  
interface FastEthernet0/1                                                       
                                                                                
                                  
 no ip address                                                                  
                                                                                
                                  
 shutdown                                                                       
                                                                                
                                  
 duplex auto                                                                    
                                                                                
                                  
 speed auto                                                                     
                                                                                
                                  
!                                                                               
                                                                                
                                  
interface Serial0/0/0                                                           
                                                                                
                                  
 no ip address                                                                  
                                                                                
                                  
 encapsulation ppp                                                              
                                                                                
                                  
 shutdown                                                                       
                                                                                
                                  
 no fair-queue                                                                  
                                                                                
                                  
 serial restart-delay 0                                                         
                                                                                
                                  
 no cdp enable                                                                  
                                                                                
                                  
 no clns route-cache                                                            
                                                                                
                                  
 xconnect 10.1.1.2 101 encapsulation l2tpv3 pw-class pswire                     
                                                                                
                                  
!                                                                               
                                                                                
                                  


----------------------------------------------

Router#show run                                                                 
                                                                                
                                  
                                                                                
                                                                                
ip cef                                                                          
                                                                                
                                  
!                                                                               
                                                                                
                                  
!                                                                               
                                                                                
                                  
pseudowire-class pswire                                                         
                                                                                
                                  
 encapsulation l2tpv3                                                           
                                                                                
                                  
 ip local interface Loopback0                                                   
                                                                                
                                  
!                                                                               
                                                                                
                                  
!                                                                               
                                                                                
                                  
interface Loopback0                                                             
                                                                                
                                  
 ip address 10.1.1.2 255.255.255.255                                            
                                                                                
                                  
!                                                                               
                                                                                
                                  
interface FastEthernet0/0                                                       
                                                                                
                                  
 no ip address                                                                  
                                                                                
                                  
 shutdown                                                                       
                                                                                
                                  
 duplex auto                                                                    
                                                                                
                                  
 speed auto                                                                     
                                                                                
                                  
!                                                                               
                                                                                
                                  
interface FastEthernet0/1                                                       
                                                                                
                                  
 no ip address                                                                  
                                                                                
                                  
 shutdown                                                                       
                                                                                
                                  
 duplex auto                                                                    
                                                                                
                                  
 speed auto                                                                     
                                                                                
                                  
!                                                                               
                                                                                
                                  
interface Serial0/0/0                                                           
                                                                                
                                  
 no ip address                                                                  
                                                                                
                                  
 encapsulation ppp                                                              
                                                                                
                                  
 shutdown                                                                       
                                                                                
                                  
 no fair-queue                                                                  
                                                                                
                                  
 serial restart-delay 0                                                         
                                                                                
                                  
 no cdp enable                                                                  
                                                                                
                                  
 no clns route-cache                                                            
                                                                                
                                  
 xconnect 10.1.1.1 101 encapsulation l2tpv3 pw-class pswire
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