As the title says, my firewall (Sonicwall) can do either IPSEC or L2TP/IPSEC for VPN connections. One advantage of L2TP/IPSEC I can see is that the client computer get allocated its own IP address on the LAN.
Are there any other advantages?
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L2TP/IPSEC wraps a simulated data link layer in IPSEC. Plain IPSEC just encrypts the network layer. If you want hosts to think they're on the same LAN, use L2TP/IPSEC; if you'd rather skip the extra bandwidth and processing overhead, use IPSEC.