your server and client seem to be linux boxen...
install wireshark or tcpdump on the server, then listen on the 'tun' interface first
tcpdump -nnel -i tun0
and try to access a Windows XP on the server-side LAN using RDP (NOT ping!). My guess would be that ARP replies are not coming through correctly...
You can repeat the exercise by listening on the 'eth0' interface and watch for similar traffic (e.g. 'tcp port 3389' for RDP)