EXPERT RESPONSE
Almost all 2600 series routers are able to terminate a VPN tunnel, whether there's a client on the other side using the Cisco VPN Client or an actual router connecting two sites via the Internet.
Because you have not specified if you're connecting a workstation or another router to this VPN, I'm going to have to point you to a specific document Cisco provides that will cover both cases.
Cisco's documentation is highly recommended because of its excellent analysis and diagrams. I really can't recall the time I've come across a document I couldn't understand!
I should also note that VPN tunnels do place extra loads on the router's CPU and have some memory requirements. Depending on your router model and VPN setup, these might vary, so I'd double check your requirements from either Cisco's site or your local reseller.
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