Updated with notes from JoshP - 100% working:
I have tried many--many different ways to get the Cisco VPN client install on Windows 7--all resulting in BSOD (ndis.sys). I have found the following procedure has worked 100% of the time on multiple hardware platforms (including VMware):
1. Install Cisco DNEupdate.
2. Reboot
3. Take ownership and delete ndis.sys (in c:\windows\system32\drivers).
4. Take ownership and delete ndis.sys.mui (in c:\windows\system32\drivers\en-us).
5. Install Cisco VPN Client 5.0.04.0300.
6. Reboot
7. Windows 7 will repair itself (should take a few seconds) and automatically reboot.
8. Cisco VPN Client should work without any other tweaks.
Original blog post below:
Method #1 (Need more reports on this one):
1. Install the Citrix DNE update before installing any VPN client.
2. Install VPN Client 5.0.4.0300. (or above if a newer version is available)
3. Connect as usual.
Method #2 (Does not always work):
1. Install VPN Client 5.0.4.0300. (or above if a newer version is available) Do not reboot yet.
2. Install the
Citrix DNE update. Do not reboot yet.
3. Take ownership of %windir%\system32\drivers\ndis.sys
4. Delete %windir%\system32\drivers\ndis.sys
5. Reboot. System will try to fix itself. Leave all defaults and allow it to repair.
6. Reboot again and login.
7. Restart the Cisco VPN client service.
8. Connect as usual.
Thanks to the helpful people in this thread
here, particularly htwnrver.
Method #3 (If Method #2 seems to fail):
#1. Perform method #2.
#2. If you still get blue screens from ndis.sys, press [F8] at boot and use 'Last Known Good Configuration' as the boot option.
#3. Repair the Cisco VPN Client.
#4. Connect as usual.
It is temperamental to get install, but I have it working 100% now, without manually entering DNS entries, default gateway or routes.
Update: Cisco VPN Client version 5.0.05.028 seems to fix the problem.
Update 2: It looks like v5.0.05.028 still has the blue screen problem.