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I'm wondering how L2TP works internally to provide transparent IP connectivity. I understand that L2TP tunnels IP packets via UDP port 1721. However I don't see how this provides transparent access. For example let's say I have a VPN connection and my browser connects to google.com. It would normally make a TCP connection to google's IP address over port 80. However something has to intercept this request and route it through L2TP's mechanism.
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Data is transmitted from your client machine to a point in your VPN network. The VPN point encrypts your data and sends it through the internet. Another point in your VPN network decrypts your data and sends it to the appropriate internet resource, such as a web server, an email server, or your company's intranet.
How a VPN works. A VPN works by routing your device's internet connection through your chosen VPN's private server rather than your internet service provider (ISP) so that when your data is transmitted to the internet, it comes from the VPN rather than your computer.
Can I be tracked if I use a VPN? No, your web traffic and IP can't be tracked anymore. However, if you use a poor quality VPN, you could still be tracked.
In the Security Now podcast they did a 4 part series VPNs is great detail. The best part is that there are transcripts online so you don't have to listen to the whole thing if you know what to search for. here's a link to the main page http://www.grc.com/vpn/vpn.htm
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