“Error 692: Hardware Failure in the Modem” Error Message When You Dial an RAS Server

Part of troubleshooting RAS (PPTP and L2TP) VPN connections is constantly tweaking your settings (both client and server) and reconnecting. This becomes a complete pain when Windows 7 decides its sick of trying and just starts generating a error 692, forcing you to reboot before you can try connecting again.

Finally after endless reboots I found a Microsoft hotfix which addresses this:

Download here:

http://support.microsoft.com/hotfix/KBHotfix.aspx?kbnum=980399&kbln=en-us