I figured my problem. I kept receiving error "HASH mismatched". I reduced my 
racoon.conf down to the basics and it worked.

racoon.conf
path pre_shared_key "/usr/local/etc/racoon/psk.txt" ;


remote anonymous
{
        exchange_mode aggressive ;
        lifetime time 24 hour ;
        proposal {
        encryption_algorithm 3des ;
        hash_algorithm sha1;
        authentication_method pre_shared_key ;
        dh_group 2;

        }
}

sainfo anonymous
{
        pfs_group 2;
        lifetime time 12 hour ;
        encryption_algorithm 3des, blowfish, des, rijndael ;
        authentication_algorithm hmac_sha1, hmac_md5 ;
        compression_algorithm deflate ;
}

psk.txt

192.168.245.12  Shared Key

Sorry for the premature post.
Aaron   
On Friday 27 August 2004 06:19 pm, Aaron Siegel wrote:
> Hello
>
> I am stumped I am try to get a very simple IPSEC tunnel between my laptops
> and gateway.  I can not seem to get the IKE to authenticate.  I have had
> this working in with my other server which has been moved to a new
> location. I have a FreeBSD 4.10 Stable server and an 5.2.1 Release. I am
> aware of the problems with 5.2.1. I am not sure what I am missing. Is there
> a problem with 4.10 Stable?  Both,  my Window XP machine and FreeBSD 5.2.1
> are able to create a link with my new server, both of these computers were
> working with my old server.
>
>   I have been able to setup a link between this computer and with my other
> server. I have listed my configuration bellow
>
> Thank you,
> Aaron
>
>
> Laptop config
>
> /etc/ipsec.conf
> spdadd 192.168.245.12/32 0.0.0.0/0 tcp -P out ipsec
> esp/tunnel/192.168.245.12-192.168.245.1/require;
> spdadd 0.0.0.0/0 192.168.245.12/32 tcp -P in ipsec
> esp/tunnel/192.168.245.1-192.168.245.12/require;
>
>
> I have copied the racoon.conf.dist file to
> /usr/local/etc/racoon/racoon.conf I have change the "life time" parameter
> to "1 hour"
>
> /usr/local/etc/racoon/psk.txt
> 192.168.245.1    Secret Key
>
> Kernel
> options        IPSEC
> options        IPSEC_ESP
> options        IPSEC_DEBUG
>
> Server
>
> /etc/ipsec.conf
> spdadd 192.168.245.12/32 0.0.0.0/0 tcp -P in ipsec
> esp/tunnel/192.168.245.12-192.168.245.1/require;
> spdadd 0.0.0.0/0 192.168.245.12/32 tcp -P out ipsec
> esp/tunnel/192.168.245.1-192.168.245.12/require;
>
> spdadd 192.168.245.15/32 0.0.0.0/0 any -P in ipsec
> esp/tunnel/192.168.245.15-192.168.245.1/require;
> spdadd 0.0.0.0/0 192.168.245.15/32 any -P in ipsec
> esp/tunnel/192.168.245.1-192.168.245.15/require;
>
>  I have copied the racoon.conf.dist file to
> /usr/local/etc/racoon/racoon.conf I have change the "life time" parameter
> to "1 hour"
>
> /usr/local/etc/racoon/psk.txt
> 192.168.245.12    Secret Key
> 192.168.245.15    Secret Key
>
> Kernel
> options       FAST_IPSEC
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