Still remain the minor problem in arrangement of IPIPA subnet mask: 169.254.0.0/16 on clients 169.254.0.0/24 on gateway
I don't know where you can see that. The tun interface is a point to > > point connection ...
...sure, it was a safe-IP on my router which cause that messages about 169.254.0.0 route: now changed safe-IP out of ipipa subnet.
PS: 2 hours reponse time isn't that bad, is it ? :)
...that's the way! (K.C. & Sunshine Band, early 70's)