Hello, how do i setup a VPN server/daemon on a Linux box? Currently, I am using the following:
"Linux **censored** 2.4.20-021stab022.8.777-enterprise #1 SMP Fri Nov 12 10:42:02 MSK 2004 i686 unknown"

It's a Debian Woody 3.0

I got other options available to me such as REDHAT9, SuSe Linux, Fedora Core 1(*laughs* but dont ask why)

Doing a apt-cache search for "vpn" keyword yields the following results:

17051:~# apt-cache search vpn
pptp-linux - Point-to-Point Tunneling Protocol (PPTP) Client
pptpd - PoPToP Point to Point Tunneling Server
tinc - Virtual Private Network daemon
freeswan - IPSEC utilities for FreeSWan
secvpn - Secure Virtual Private Network (secvpn)
tunnelv - Encrypted network connection within a TCP/IP connection
vpnd - Virtual Private Network Daemon

Just a point to be taken, my kind of idea of a VPN server is that I am able to connect to the remote VPN server from my Windows XP Version 5.1(Build 2600.xpsp_sp2_gdr_050301-1519 : Service Pack 2) through the "New Connection Wizard". Just to be more specific,

Start the "create a new connection wizard" built into windows.
In windows 2000 click on Start > Settings > Network and dialup settings > Make New Connection
In windows XP click on Start > Connect to > Show all Connections. Now there should be an option that says "add a new connection" or "create a new connection" - choose it
You should now have a screen that looks like this. The screens show below will vary depending on the version of windows you have but most settings are similar enough to follow along. Click NEXT.
Choose the connection type that mentions VPN in the title or description as seen below. Click NEXT.
Choose Virtual Private Network connection. Click NEXT.
Enter virtual private network hostname and click NEXT.
Choose "Do not dial the initial connection". This setting is really optional depending on your preference. Click NEXT.
Click here to choose a server and then enter it here. For example, enter hostname.example.com and click NEXT. Note that this should be the same vpn server you choose a moment ago. (Two steps ago)
Click "Add a shortcut ...." as shown below.
Next start up the vpn connection. On most versions of windows it will open automatically. Enter your "User Name" and "Password" and click Connect. Optionally you can choose to save the user name and password if you like.

From the search above, which software/application vpn daemons/servers is feasible in which it allows me to be able to run such a VPN server allowing me to setup/edit configuration settings such as users/passwords.
Allows encryption and stuff like that. Any technically specific details on how to setup one would be very helpful to me. The VPN server should be able to bind to multiple IPs available on the server. Specific and clear details needed if possible. Thank you.

The defualt vpn protocol for a winders OS is PPTP, so the PPTPD product you mentioned in your post would be a good starting point (thats what I use at this end).

Also, both W2K and XP support IPSEC based vpn tunnels out of the box, but defining the SA's (security associations) is a royal PITA in winders. Microsoft out did themselves on the number of dialog boxes you must dive into in order to define the SA. Geeez!

Anyway, if you are intersted in IPSEC, the following article is a must read if you plan on using a linux box as an endpoint.
http://www.ipsec-howto.org/

if you want to open your vpn connection from the wizard, i'd use poptop, else. what i have used for site to site links is openvpn, its more flexible and i like several features. greetings!