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Difference between setting up a vpn with windows 7 and cisco routers

Hi.I was wondering what the main difference Is between setting up a vpn with windows 7 or configuring It on cisco routers.

  When you setup the vpn on windows 7 or xp do the client and server pc's take care of the encryption and decryption whereas configuring vpn on routers , the encryption and decryption Is done solely by the routers?

If I want to setup a connection where an IP In the same Internal lan Is assigned to the client pc I'm guessing I'd have to use a router configuration.

  Thanks

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