Just to be clear, it sounds like this:
Site A:
WAN Subnet is public, PPPoE
LAN Subnet is 192.168.2.x
Site B:
WAN Subnet is private, 192.168.1.x
LAN Subnet is also 192.168.1.x
Is that right? If so, that won't work. The LAN and WAN subnets must be different at Site B, and that may be part of your problem.
However, if the tunnel comes up OK, you may just be missing the firewall rules for IPsec. Go to Firewall > Rules, IPsec tab on both sites and add an allow all rule (or allow whatever you like) - be sure the protocol on the rule is 'any' and not TCP or else you can't ping over the tunnel.