VPN can be added via an IOS upgrade/change, however on the 3640 there is by default no hardware accelerated VPN. I think there is (was?) a VPN Accelerator NM module for the 3600 routers that handled the VPN encryption/decryption. You can do this in software it just isn't as efficient.
All the new ISR routers have VPN acceleration hardware built-in (I think, certainly my 877 has).
"The data encryption modules, AIM-VPN/HP for the Cisco 3660 and NM-VPN/MP for the Cisco 3620 and 3640, are hardware Layer 3 (IPSec) encryption modules and provide DES(56-bit) and 3DES(168-bit) IPsec encryption for multiple T1s or E1s of bandwidth. This level of performance is a dramatic increase over that achievable when running IPSec in software on the main CPU of the Cisco 2600 or 3600. These products also have hardware support for DH, RSA, and DSA key generation. In addition to encryption, the data encryption AIM is intended to increase the security of passwords and various encryption keys over that provided by IOS software and the platform hardware. Specifically, these products have been submitted for Level 2 of the Federal Information Processing Standard (FIPS) 140-1 in general as well as more stringent levels for some parameters such as Level 3 tamper resistance.
ya so as stated above im pretty sure there is no vpn hardware in that router.. so your milage will vary depending on how many vpn tunnels you wish to create or terminate on it without adding the hardware module.
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