This how-to is irrelevant since recent versions of android work without modification with openvpn. 

Android IPSEC VPN setup.
So it has been a while since I have written anything worth posting.. I recently picked up an LG Optimus S from Sprint during a free web special. It is a wonderful phone, but lacked VPN capabilities just like the blackberry. With a little research I lucked into getting functionality resembling the cisco vpn client.

Mileage will vary if you are looking at doing this on a different phone. As usual I am not responsible if you brick it.... We need to outline the main tasks.
1. root the phone (z4root is the easiest way to go if possible.. and you get a recent version of busybox)
2. make sure busybox is installed correctly
3. install a custom recovery
4. install kernel that has the TUN.KO module
5. install openvpn installer from market
6. install vpn connections
7. configure vpnc and connect!

Remember: forums.androidcentral.com is your friend, and I'm not responsible if you brick it!

Part 1. Is pretty easy... download the z4root app, and root.. then you are done.. (this does not work anymore for most phones)

Part 2. Best thing to use for this is the busybox installer in the marketplace. I have had luck with using version 1.17.1, and make sure it is installed in /system/xbin

Part 3. This is so phone specific that you would be better off with the android central instructions.

Part 4. Go to androidcentral.com and do a little searching around for a custom kernel/rom that includes the tun.ko module (cyanogen, xonia) and follow their instructions.

Part 5. Install openvpn installer from market and run it to install some needed files

Part 6. Install vpn connections (aka get-a-robot-vpnc) from http://code.google.com/p/get-a-robot-vpnc/

Part 7. Configure vpn connections and connect!

Good luck!