Thanks to Robert McKay for the answer that fixed it.

His explanation was

> Did you forget to add ttl 255 (or similar) to the tunnel setup? By default 
> the gre packets will end up with the ttl set to the same as the inside 
> payload ttl so when you traceroute they won't reach the other gateway.. that 
> sounds like what you might be talking about?
> 
> http://lartc.org/howto/lartc.tunnel.gre.html 
> <http://lartc.org/howto/lartc.tunnel.gre.html>

Added TTL=255 to the ifcfg-tun* config files and all is well.

Thanks to the others for their ideas (too many to name).

Great community

EKG



> On Oct 19, 2016, at 8:27 AM, Eric Germann <ekgerm...@semperen.com> wrote:
> 
> Colleagues,
> 
> I know we’re all usually running big gear, but I’ve been tasked with building 
> some appliances to run in the cloud as VM’s.
> 
> Looking for someone who has built on Centos 7 using IPSec and GRE tunnels.  
> Having an issue with GRE tunnels and trace route. That’s pulling my hair out.
> 
> If you’d like to discuss, reply off list.
> 
> Thanks
> 
> EKG
> 

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