I seem to be getting this annoying error intermittently.
Although my internet connection is working fine the Connect To dialog insists that I can't connect to my VPN connections as there isn't an active connection. If I dig down to the actual Control Panel > Network Connections screen I can connect the the required connection without any problems so this is an annoyance rather than a major issue but I thought I'd see if anyone knows of a permanent fix to this.
I've already tried amending the binding order to make sure my LAN is listed before anything else which hasn't helped.
I am having the exact same problem, what triggers it for me, is VMware Workstations 2 Network interfaces, if I disable either “VMware Network Adapter VMnet8” or “VMware Network Adapter VMnet1” I can use the “Connect To” windows just fine, if however they both are enabled it says there is no active connection.
Do you by any chance have VMware Workstation / (Or Player) installed with both interfaces enabled?
I did the interface bindings trick aswell, but that didnt help, the above with disabling one of the two VMware interfaces did however, i have yet to find out why this happens.
I've had numerous VPN stability issues in both Windows Vista and Windows 7 when VMware Workstation is installed on the machine. I have a Vista machine that experiences the exact behavior mentioned in the OP's question.
An alternative to disabling one of the VMware Network Adapters is to kill the various vm* services that launch at startup when you're not using them (or prevent them from starting to begin with). This seems to improve VPN functionality for me as well.