Connection Type
There are two types of IPsec VPNs:
  1. Point-to-Point: Also referred to as 'transport mode' this type establishes a secure VPN between two machines.
  2. Subnet-to-Subnet: Also referred to as 'tunnel mode' this type establishes a secure VPN between two networks, or one machine and one network.

Normally you want to choose Subnet-to-Subnet. Please refer to your EnGarde documentation for more information on this subject.