Im using an ADSL connection with Dynamic IP. Is it possible to setup a VPN server (eg WIn2000) using this type of connection?

Yes.

Dynamic DNS services such as »www.dyndns.org allow you to use a Domain Name - either your own or one they will allocate to you - in place of an IP address in your VPN setup. Set-up is simple. When a router wants to contact your router, a DNS look-up is performed and the current IP address for the remote router is provided. More on Dynamic IP and VPN here: »www.technopagan.org/dynamic/

In Win2K, go to My Network Places -> Properties -> Create a New Connection -> Accept Incoming Connections.

In the dialog box for Devices for Incoming Connections, do not select any device. Click Next and check "Allow Private Connections", and then click Next again.

In the dialog box for Allowed Users, select or add all users for whom you want to enable access. The accounts must exist on all computers that will be involved in establishing the VPN connection.

In the New Connection Wizard, File and Printer Sharing for Microsoft Networks, Internet Protocol (TCP/IP) and Client for Microsoft Networks should all be enabled. "Allow callers to access my local area network" and "Assign TCP/IP address automatically using DHCP" are checked by default. To keep the default settings, just click Next. The "Incoming Connection" icon should then appear in My Network Places -> Properties and should be ready to use.