Cisco PIX 7.0.1 to Watchguard V60 VPN Tunnel

I am upgrading all my compaines firewalls with the new 7.0 on all our pixes. We have one enviroment with a Watchguard V60. With version

6.3.4 of the pix software, I have successfully created a VPN tunnel from the v60 to the pix many times in the past. Now that my test PIX has been upgraded to 7.0, I have been unable to do so and it is a major hold up to my project...but what isn't a hold up right? See partial packet dump below... Keeps saying PAYLOAD_MALFORMED where i have it marked with
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jbuice
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Leythos

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