I too am having a similar issue.
Installing the Windows 8.1 Consumer Preview overwrote my network connections (along with my graphics card drivers). I figured a re-install of the Cisco IPSec VPN client would resolve the issue.
Instead, upon re-installing the Client, BOTH of my network adapters were really,
really broken. Despite having a wired connection, my Local Area Connection wasn't showing up, along with the VPN adapter. The only connection I had was a Bluetooth connection.
So, sometimes when your connection to the nearest hop is broken, the adapter will lease you a 169.254.x.x address. Not my PC. I get no lease. I cannot ping. I cannot tracert. No DNS, DHCP, TCPIP. Meanwhile, 'diagnosing' the issue using Windows' built-in
tool identifies the issue as the NIC not being able to get a DHCP lease, but fails immediately and cannot rectify the issue.
My only solution to getting a working network connection is to uninstall the Cisco VPN Client. I'm posting here because this is the first Google hit for "Windows 8.1 Cisco VPN client issues", and I'm clearly not the only person having an issue.
If anyone has any ideas, they are much appreciated.