Windows 7 Home Basic Key cannot ping or connect to

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Hello,Windows 7 Home Basic Key,
my lab is made up for the subsequent
laptop computer -> Windows 2003 RRAS server -> Internal LAN
laptop computer IP 10.1.1.2 255.0.0.0 (no gateway listed)
connected via cross over to
RRAS Server External 10.1.1.1 255.0.0.0 (no gateway listed)
RRAS Server Internal 192.168.1.x/24 (DHCP address)
I try to ping the server from the laptop and get 4/4 packet loss. The
Mac address server is present in the arp table from the laptop
On the server I cannot ping the laptop computer. Destination net unreachable is
the message.
Check netstat -na and it says SYN Received. The laptop Mac address is
present in the server arp table.
Eventually the PPTP tunnel times out with the non descript error 800.
(I'm not even going to try l2tp until I can get the most basic service
running.)
I cannot browse the internal lan when RRAS is enabled. When it is
disabled. It all seems to work.
I used the Wizard to configure RRAS. Something on the server is
blocking the access.
Does anyone have any suggestions or ideas?
Thanks and sorry for babbling...
G