You need activation key to enable DES/3DES.
Issue a "show ver" command to see what you have right now.
The need for additional hardware depends on the kind of VPN (site to site / remote access) and other factors (how many tunnels, bandwidth, encryption and more).
There is an add-on card for 520 to support higher VPN performance, but the basic box can do software VPN.
All you need is a CCO user account, but the simplest variant of those is free too, and I just used my free CCO account to recieve the free 3DES activation-key.
There's the usual export restriction from North America of course, but that shouldn't be a problem.
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