SSH-based VPN gives "Destination Host Prohibited"

[dandaman32]

I'm attempting to set up a SSH-based VPN as per https://help.ubuntu.com/community/SSH_VPN. The system worked great with my remote system running F7. I backed up and restored my entire /etc/ssh directory on the server in question, which was upgraded to F8 over the weekend. The local computer is running Ubuntu Gutsy and the VPN worked fine even under Gutsy until the upgrade to F8. The setup process works as follows before problems are encountered:

1. Local: ssh -w 0:0 root@remote.host
2. Local: sudo ifconfig tun0 192.168.1.202 pointopoint 192.168.1.201
3. Remote: ifconfig tun0 192.168.1.201 pointopoint 192.168.1.202
4. Remote: arp -sD 192.168.1.201 eth0 pub
5. Local: sudo route
6. Local: ping 192.168.1.2; result:
   

   ~$ ping 192.168.1.2
   PING 192.168.1.2 (192.168.1.2) 56(84) bytes of data.
   From 192.168.1.201 icmp_seq=1 Destination Host Prohibited
   From 192.168.1.201 icmp_seq=2 Destination Host Prohibited
   From 192.168.1.201 icmp_seq=3 Destination Host Prohibited
   
   --- 192.168.1.2 ping statistics ---
   3 packets transmitted, 0 received, +3 errors, 100% packet loss, time 2008ms

The remote server's local IP is 192.168.1.195, and pinging that IP works. Deleting the route for the local subnet (in my case, 172.17.64.0/255.255.255.0) doesn't change things. Anybody have any clue as to what's happening here? Thanks in advance.

(Edit: It should also be noted that I do have IP forwarding enabled [echo 1 > /proc/sys/net/ipv4/ip_forward] on the remote system.)

--Dan