Sorry for a slow (to say the least!) response, but I'm glad you got it working. You are correct about the router behaviour, it won't look down the VPN for local addresses. This is not my problem, as y ...
This is what happened with me. As I speculated above, I'm guessing the VPN is negotiated using allowed protocols / ports (it can't be done in a tunnel, since there isn't one yet) and that all works ok ...