Unable to bring phase 2 with custom Local Address up

[TSO]

Hi,

I'm having an issue with an IPSEC configuration between a pfsense version 2.1-release and a fortigate 30D.  The Phase 1 has come up fine and one of the phase 2 connections between the LAN interface on the pfsense and the remote network on the fortigate is working fine.

The issue I have is when trying to create a phase 2 with a "Network" address on the pfsense, when I do that - pfsense simply won't allow me to bring the phase 2 online - screenshots attached of the Phase 2 config that isn't working and the phase 2 status where you can see my LAN - remote network configuration working and the Network - Remote network configuration not working (and there is no Play button to bring up the VPN, so I'm guessing I'm doing something fundamentally wrong on the pfsense).

Do I need to create a VLAN interface on the pfsense for the 10.32.168.0 subnet I want to push across the VPN, or is there something more basic I'm missing?

Thanks,
TSO