I still have this problem on Gutsy with the latest updates as of today,
11/28/07. It seems my WEP keys are stored but the VPNC passwords are
not. If I use the Applications -> Passwords and Encryption Keys utility,
I see the correct passwords stored for my VPN connections. However, they
are NOT loaded when I choose an existing connection.

I just created a new connection and it appears the group and user
passwords are remembered at least for this session. When I can, I will
shutdown the computer and see if the passwords are remembered. Will
report back soon.

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VPN passwords not saved
https://bugs.launchpad.net/bugs/111507
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