Firewall – VPN: Cisco / Watchguard: IKE lost contact with remote peer

I'm trying to set up a lan-to-lan VPN between a Cisco ASA 5510 (7.0(5) firmware, IP 222.222.222.222) and a Watchguard X750e firewall (10.2 firmware, IP 111.111.111.111)

Phase 1 comes up but then the message "IKE lost contact with remote peer, deleting connection" comes up in the logs and the ASa never starts Phase 2 configuration. What could be causing this?

Log and config information follows, sorry about the ugly looking wall of text:

From the logs at the ASA end:

Jun 12 2009 21:00:51: %ASA-3-713119: Group = 111.111.111.111, IP = 111.111.111.111, PHASE 1 COMPLETED
Jun 12 2009 21:00:51: %ASA-7-713121: IP = 111.111.111.111, Keep-alive type for this connection: DPD
Jun 12 2009 21:00:51: %ASA-7-713906: Group = 111.111.111.111, IP = 111.111.111.111, Starting phase 1 rekey timer: 64800000 (ms)
Jun 12 2009 21:00:52: %ASA-7-715036: Group = 111.111.111.111, IP = 111.111.111.111, Sending keep-alive of type DPD R-U-THERE (seq number 0x66612de1)
Jun 12 2009 21:00:52: %ASA-7-715046: Group = 111.111.111.111, IP = 111.111.111.111, constructing blank hash payload
Jun 12 2009 21:00:52: %ASA-7-715046: Group = 111.111.111.111, IP = 111.111.111.111, constructing qm hash payload
Jun 12 2009 21:00:52: %ASA-7-713236: IP = 111.111.111.111, IKE_DECODE SENDING Message (msgid=56732dee) with payloads : HDR + HASH (8) + NOTIFY (11) + NONE (0) total length : 84
Jun 12 2009 21:00:54: %ASA-7-715036: Group = 111.111.111.111, IP = 111.111.111.111, Sending keep-alive of type DPD R-U-THERE (seq number 0x66612de2)
Jun 12 2009 21:00:54: %ASA-7-715046: Group = 111.111.111.111, IP = 111.111.111.111, constructing blank hash payload
Jun 12 2009 21:00:54: %ASA-7-715046: Group = 111.111.111.111, IP = 111.111.111.111, constructing qm hash payload
Jun 12 2009 21:00:54: %ASA-7-713236: IP = 111.111.111.111, IKE_DECODE SENDING Message (msgid=f3add2bd) with payloads : HDR + HASH (8) + NOTIFY (11) + NONE (0) total length : 84
Jun 12 2009 21:00:54: %ASA-7-713906: Received unexpected event EV_RESEND_MSG in state MM_REKEY_DONE_H2
Jun 12 2009 21:00:56: %ASA-7-715036: Group = 111.111.111.111, IP = 111.111.111.111, Sending keep-alive of type DPD R-U-THERE (seq number 0x66612de3)
Jun 12 2009 21:00:56: %ASA-7-715046: Group = 111.111.111.111, IP = 111.111.111.111, constructing blank hash payload
Jun 12 2009 21:00:56: %ASA-7-715046: Group = 111.111.111.111, IP = 111.111.111.111, constructing qm hash payload
Jun 12 2009 21:00:56: %ASA-7-713236: IP = 111.111.111.111, IKE_DECODE SENDING Message (msgid=f65762ed) with payloads : HDR + HASH (8) + NOTIFY (11) + NONE (0) total length : 84
Jun 12 2009 21:00:57: %ASA-7-713906: Received unexpected event EV_RESEND_MSG in state MM_REKEY_DONE_H2
Jun 12 2009 21:00:58: %ASA-3-713123: Group = 111.111.111.111, IP = 111.111.111.111, IKE lost contact with remote peer, deleting connection (keepalive type: DPD)

And at the Watchguard end:

11:08:36 iked Drop negotiation to peer 222.222.222.222:500 due to phase 1 retry timeout msg_id="0203-5161"             Debug
11:08:40 iked WARNING: Mismatched ID settings at peer 222.222.222.222:500 caused an authentication failure msg_id="0203-5156"      Debug
11:08:40 iked  Process 5/6 Msg : failed to process ID payload              Debug

11:17:00 iked  Process 5/6 Msg : failed to process ID payload 4           Debug
11:17:00 iked  Process INFO_EXCHANGE : EncryptBit set before SA created              Debug
11:17:00 iked Cannot process the inform message from 222.222.222.222:500 to 111.111.111.111 cookies i=9a3397be 0547688f r=1665ee71 2185bf5c msg_id="0203-5059"       Debug

The config at our end looks like this:

object-group network REMOTENETWORK
 network-object 215.12.34.0 255.255.255.0

access-list outside_cryptomap_100 extended permit ip 10.88.88.96 255.255.255.240 object-group REMOTENETWORK 
access-list outside_cryptomap_100 extended permit ip 10.88.88.128 255.255.255.224 object-group REMOTENETWORK 

crypto ipsec transform-set ESP-3DES-SHA esp-3des esp-sha-hmac 

crypto map outside_map 100 match address outside_cryptomap_100
crypto map outside_map 100 set peer 111.111.111.111 
crypto map outside_map 100 set transform-set ESP-3DES-SHA

tunnel-group 111.111.111.111 type ipsec-l2l
tunnel-group 111.111.111.111 ipsec-attributes
 pre-shared-key SECRETKEY

Screenshots of remote Watchguard config for phase 1 and 2:

http://www.infinitemonkeyproductions.net/wow_forum/watchguard1.jpg http://www.infinitemonkeyproductions.net/wow_forum/watchguard1.jpg

http://www.infinitemonkeyproductions.net/wow_forum/watchguard2.jpg http://www.infinitemonkeyproductions.net/wow_forum/watchguard2.jpg