Facts:
VMware Workstation v6.5.1 build-126130
Cisco VPN Client v4.8.02.0010
Host system: Win XP SP2
Guest system: Win XP SP2
Both XP systems: All Windows Updates current/complete
Scenario 1:
Host OS is connected to VPN
Guest OS is then started under VMware Workstation
Guest OS cannot connect to any of the VPN servers
Moreover, the Guest OS cannot even PING any of the VPN servers
NSLOOKUP in Guest OS cannot determine the proper IP address for any of the VPN servers, either
Scenario 2:
Disconnect Host OS from VPN
Guest OS is still up and running from Scenario 1
Guest OS can now PING any of the VPN servers
Now, reconnect Host OS to VPN
Guest OS can STILL ping any of the VPN servers
Guest OS can also connect to any of the VPN servers
Once Guest OS disconnects from VPN server, it - once again - cannot even PING any of the VPN servers ...
... unless I disconnect the Host OS from VPN, again
Scenario 3:
Edit the Guest OS' "hosts" file (C:\windows\system32\drivers\etc\hosts)
Connect and disconnect from VPN in Guest OS w/o need to disconnect Host OS from VPN, ever.
What is it with the Cisco VPN client on the host OS that is adversely affecting the DNS on the guest OS??!!
Please check that you have the latest driver for your Host's network card installed.
Then, can you try a test and temporarily turn off any "task offload" or other "offload" settings under the properties for your Host's network card to see if it makes a difference?
Are you running any 3rd party firewalls on your Host or Guest (BlackICE, Symantec Network Protection, etc)? What antivirus do you have installed?
This sounds like fairly standard VPN client behaviour which is to stop any incoming traffic when the VPN is up. Where is your DNS server with respect to the guest? If you need network connectivity, it "might* be possible to add another NIC to the host , use that as a manually bridged adapter, and not let the VPN client manage that link although there are no guarantees.
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This all used to work just fine and dandy under VMware Workstation_6.0.5
Since upgrading to 6.5.1, it's not behaving as it used to.
As for firewalls, we now use Symantec Endpoint Protection. It, too, is new on the system. But, as I outlined, by merely disconnecting temporarily, the guest OS can connect to VPN once it was able to ping it successfully.