Cisco ATM to ethernet VLAN local switching


I'm trying to get the ATM to ethernet VLAN local switching working properly.
What I'm trying to achieve is to connect a Cisco 828 over an SDSL line using
a VP/VC that terminates on a Cisco 7200. This VC is then connected at layer
2 on the 7200 to a VLAN, which eventually terminates on a Cisco2621.

Physical view:

828 ____SDSL ____ ATM ____ 7200 ____VLAN____ 2621
router DSLAM cloud router router

I can get the 828 to talk to the 7200 at layer 3 no problem, but what I'm
trying to do is get the 828 to see the 2621 as being directly connected at
layer 3 (i.e. the 7200 is transparent). Here is the logical (layer 3) view:

828 ____ 2621
router router

The config I'm trying to use is the following under the fastethernet

  connect connection-name interface pvc interface interworking

This is described in more detail here:

I'm not having any joy getting this working, so I was wondering whether any
of you have had any experience with this and can help me out?

The 7200 is a 7206VXR running IOS 12.2(25)S1.

Thanks in advance,