Mac OS X Lion uses open-source package ip-sec for its built-in VPN support. It is easy enough to setup debug-level logging to troubleshoot issues with VPN: just add a file called com.apple.ipsec.plist under /Library/Preferences/SystemConfiguration directory. File should contain the following xml structure:
<?xml version="1.0" encoding="UTF-8"?>
<!DOCTYPE plist PUBLIC "-//Apple//DTD PLIST 1.0//EN" "http://www.apple.com/DTDs/PropertyList-1.0.dtd">
<plist version="1.0">
<dict>
<key>Global</key>
<dict>
<key>DebugLevel</key>
<integer>2</integer>
<key>DebugLogfile</key>
<string>/Users/martin/jazz.log</string>
</dict>
</dict>
</plist>
Next time VPN connection is initiated there will be debug log created in the /Users/martin/jazz.log file.