@janjust. I agree that is exactly what the message is trying to say. The problem is that I saw the same warning message in the US. Anyway, it is merely a warning message and does not prevent the VPN from working. I am convinced it is not causing the problem.
On another note, I decided to test another VPN solution. I looked at usaip.eu and downloaded their OPENVPN config files. I connected to the server in California using a trial account, and as suspected it connected successfully. However, I am seeing the exact same problem. I cannot browse the internet... it just hangs. Below you will find the connection log from my client for their VPN.
Thu Feb 02 05:56:02 2012 OpenVPN 2.2.1 Win32-MSVC++ [SSL] [LZO2] built on Jul 1 2011
Thu Feb 02 05:56:06 2012 WARNING: --ping should normally be used with --ping-restart or --ping-exit
Thu Feb 02 05:56:06 2012 WARNING: No server certificate verification method has been enabled. See http://openvpn.net/howto.html#mitm for more info.
Thu Feb 02 05:56:06 2012 NOTE: OpenVPN 2.1 requires '--script-security 2' or higher to call user-defined scripts or executables
Thu Feb 02 05:56:06 2012 Control Channel MTU parms [ L:1575 D:140 EF:40 EB:0 ET:0 EL:0 ]
Thu Feb 02 05:56:06 2012 Socket Buffers: R=[8192->8192] S=[8192->8192]
Thu Feb 02 05:56:06 2012 Data Channel MTU parms [ L:1575 D:1450 EF:43 EB:4 ET:32 EL:0 ]
Thu Feb 02 05:56:06 2012 Local Options hash (VER=V4): '10f35004'
Thu Feb 02 05:56:06 2012 Expected Remote Options hash (VER=V4): 'a917298a'
Thu Feb 02 05:56:06 2012 Attempting to establish TCP connection with 184.22.232.195:993
Thu Feb 02 05:56:10 2012 TCP connection established with 184.22.232.195:993
Thu Feb 02 05:56:10 2012 TCPv4_CLIENT link local: [undef]
Thu Feb 02 05:56:10 2012 TCPv4_CLIENT link remote: 184.22.232.195:993
Thu Feb 02 05:56:10 2012 TLS: Initial packet from 184.22.232.195:993, sid=4a9ba36b db253bd6
Thu Feb 02 05:56:10 2012 WARNING: this configuration may cache passwords in memory -- use the auth-nocache option to prevent this
Thu Feb 02 05:56:11 2012 VERIFY OK: depth=1, /C=US/ST=NA/L=USAIP/O=USAIP/emailAddress=info@usaip.eu
Thu Feb 02 05:56:11 2012 VERIFY OK: depth=0, /C=US/ST=NA/O=USAIP/OU=usaip/CN=usaip/emailAddress=info@usaip.eu
Thu Feb 02 05:56:12 2012 Data Channel Encrypt: Cipher 'BF-CBC' initialized with 128 bit key
Thu Feb 02 05:56:12 2012 Data Channel Encrypt: Using 160 bit message hash 'SHA1' for HMAC authentication
Thu Feb 02 05:56:12 2012 Data Channel Decrypt: Cipher 'BF-CBC' initialized with 128 bit key
Thu Feb 02 05:56:12 2012 Data Channel Decrypt: Using 160 bit message hash 'SHA1' for HMAC authentication
Thu Feb 02 05:56:12 2012 Control Channel: TLSv1, cipher TLSv1/SSLv3 DHE-RSA-AES256-SHA, 1024 bit RSA
Thu Feb 02 05:56:12 2012 [usaip] Peer Connection Initiated with 184.22.232.195:993
Thu Feb 02 05:56:14 2012 SENT CONTROL [usaip]: 'PUSH_REQUEST' (status=1)
Thu Feb 02 05:56:19 2012 SENT CONTROL [usaip]: 'PUSH_REQUEST' (status=1)
Thu Feb 02 05:56:24 2012 SENT CONTROL [usaip]: 'PUSH_REQUEST' (status=1)
Thu Feb 02 05:56:24 2012 PUSH: Received control message: 'PUSH_REPLY,ping 20,ping-restart 60,route-gateway 172.31.255.254,ifconfig 172.31.156.107 255.255.0.0'
Thu Feb 02 05:56:24 2012 OPTIONS IMPORT: timers and/or timeouts modified
Thu Feb 02 05:56:24 2012 OPTIONS IMPORT: --ifconfig/up options modified
Thu Feb 02 05:56:24 2012 OPTIONS IMPORT: route-related options modified
Thu Feb 02 05:56:24 2012 ROUTE default_gateway=192.168.1.1
Thu Feb 02 05:56:24 2012 TAP-WIN32 device [Local Area Connection 4] opened: \\.\Global\{A6818917-76E8-4D8D-AA2E-95E9B86EBCFD}.tap
Thu Feb 02 05:56:24 2012 TAP-Win32 Driver Version 9.8
Thu Feb 02 05:56:24 2012 TAP-Win32 MTU=1500
Thu Feb 02 05:56:24 2012 Notified TAP-Win32 driver to set a DHCP IP/netmask of 172.31.156.107/255.255.0.0 on interface {A6818917-76E8-4D8D-AA2E-95E9B86EBCFD} [DHCP-serv: 172.31.0.0, lease-time: 31536000]
Thu Feb 02 05:56:24 2012 Successful ARP Flush on interface [18] {A6818917-76E8-4D8D-AA2E-95E9B86EBCFD}
Thu Feb 02 05:56:44 2012 TEST ROUTES: 32/32 succeeded len=32 ret=1 a=0 u/d=up
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.232.0 MASK 255.255.255.128 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.232.128 MASK 255.255.255.192 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.232.192 MASK 255.255.255.254 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.232.194 MASK 255.255.255.255 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.0.0 MASK 255.255.128.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.128.0 MASK 255.255.192.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.192.0 MASK 255.255.224.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.224.0 MASK 255.255.248.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.0.0.0 MASK 255.240.0.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.16.0.0 MASK 255.252.0.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.20.0.0 MASK 255.254.0.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 0.0.0.0 MASK 128.0.0.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 128.0.0.0 MASK 224.0.0.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 160.0.0.0 MASK 240.0.0.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 176.0.0.0 MASK 248.0.0.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.232.196 MASK 255.255.255.252 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.232.200 MASK 255.255.255.248 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.232.208 MASK 255.255.255.240 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.232.224 MASK 255.255.255.224 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.233.0 MASK 255.255.255.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.234.0 MASK 255.255.254.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.236.0 MASK 255.255.252.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.22.240.0 MASK 255.255.240.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:44 2012 C:\WINDOWS\system32\route.exe ADD 184.23.0.0 MASK 255.255.0.0 172.31.255.254
Thu Feb 02 05:56:44 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:44 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:45 2012 C:\WINDOWS\system32\route.exe ADD 184.24.0.0 MASK 255.248.0.0 172.31.255.254
Thu Feb 02 05:56:45 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:45 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:45 2012 C:\WINDOWS\system32\route.exe ADD 184.32.0.0 MASK 255.224.0.0 172.31.255.254
Thu Feb 02 05:56:45 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:45 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:45 2012 C:\WINDOWS\system32\route.exe ADD 184.64.0.0 MASK 255.192.0.0 172.31.255.254
Thu Feb 02 05:56:45 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:45 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:45 2012 C:\WINDOWS\system32\route.exe ADD 184.128.0.0 MASK 255.128.0.0 172.31.255.254
Thu Feb 02 05:56:45 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:45 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:45 2012 C:\WINDOWS\system32\route.exe ADD 185.0.0.0 MASK 255.0.0.0 172.31.255.254
Thu Feb 02 05:56:45 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:45 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:45 2012 C:\WINDOWS\system32\route.exe ADD 186.0.0.0 MASK 254.0.0.0 172.31.255.254
Thu Feb 02 05:56:45 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:45 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:45 2012 C:\WINDOWS\system32\route.exe ADD 188.0.0.0 MASK 252.0.0.0 172.31.255.254
Thu Feb 02 05:56:45 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:45 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:45 2012 WARNING: potential route subnet conflict between local LAN [192.168.1.0/255.255.255.0] and remote VPN [192.0.0.0/192.0.0.0]
Thu Feb 02 05:56:45 2012 C:\WINDOWS\system32\route.exe ADD 192.0.0.0 MASK 192.0.0.0 172.31.255.254
Thu Feb 02 05:56:45 2012 ROUTE: CreateIpForwardEntry succeeded with dwForwardMetric1=30 and dwForwardType=4
Thu Feb 02 05:56:45 2012 Route addition via IPAPI succeeded [adaptive]
Thu Feb 02 05:56:45 2012 Initialization Sequence Completed
Edit: Also notice that the same warning message pops up even in this case where they are clearly not using the same mask or subnet!