HOWEVER... There's an implementation problem. When you put in the VPN information it loses the password and prompt you to re-enter it when you click on the icon to turn the VPN On. This wouldn't be a big deal if a normal keyboard came up BUT instead a numeric only keypad (like what you use in the phone app) comes up. So... unless your 'password' for your VPN is numeric only (not likely) then you can't connect. This is an obvious programmatic screw-up that I hope Apple addresses in the next update.
There is a work around, sort of... You can connect to a VPN that has a non-numeric password by re-setting your password in Settings > General > Network > VPN > VPN Settings and then turning on the VPN from Settings > General > Network > VPN > VPN 'on/off'. After re-entering your password this way you bypass the prompt for a password. However, it will lose your password again and you'll have to go through the whole tedious procedure when you need to VPN again... *sigh* On the bright side the iPhone's VPN seems pretty robust and I haven't had many disconnects or speed issues with it.
I'm hopeful that Apple will correct this obvious oversight in bringing up the WRONG keypad to allow you to enter a non-numeric password. Come on, Steve!
The 'glitch' in it losing your password still needs to be fixed since that's a bug but the other part would make this bug at least tolerable and should be a very quick fix to the code.