Poor quality I know, but this is my girlfriend’s iPod Touch (fresh with the 2.0 update) successfully on the L2TP/IPSec VPN I set up some months back to test with x5315’s iPhone, showing the Tombraider (my server) home page. At some point (probably when I get my iPhone) I will do a detailed(ish) tutorial on setting up your own L2TP/IPSec VPN to use with your iPhone (using open source software only).

Click the more link for updated screenshots from the Touch itself.