changing to next-hop-interface vti0 didn't fix the problem... Here's the full dump of my config.boot file:
firewall { all-ping enable broadcast-ping disable ipv6-receive-redirects disable ipv6-src-route disable ip-src-route disable log-martians enable modify SOURCE_ROUTE { rule 10 { action modify description "eth1 to VPN" modify { table 2 } source { address 192.168.4.0/27 } } } name WAN_IN { default-action drop description "WAN to internal" rule 9 { action accept destination { group { address-group ADDRv4_eth0 } } log enable protocol esp source { address <"external IP of paloalto"> } } rule 10 { action accept description "Allow established/related" state { established enable related enable } } rule 20 { action drop description "Drop invalid state" state { invalid enable } } } name WAN_LOCAL { default-action drop description "WAN to router" rule 10 { action accept description "Allow established/related" state { established enable related enable } } rule 20 { action drop description "Drop invalid state" state { invalid enable } } } receive-redirects disable send-redirects enable source-validation disable syn-cookies enable } interfaces { ethernet eth0 { address <"external IP of EdgeRouter">/30 description WAN duplex auto firewall { in { name WAN_IN } local { name WAN_LOCAL } } speed auto } ethernet eth1 { address 192.168.4.1/27 description LAN1 duplex auto firewall { in { modify SOURCE_ROUTE } } speed auto } ethernet eth2 { address 192.168.4.33/27 description LAN2 disable duplex auto speed auto } loopback lo { } vti vti0 { address 192.168.4.254/30 ip { } mtu 1436 } } protocols { static { interface-route 192.168.150.0/24 { next-hop-interface vti0 { description "Server Subnet" } } table 2 { route 0.0.0.0/0 { next-hop-interface vti0 { } } } } } service { dhcp-server { disabled false hostfile-update disable shared-network-name LAN1 { authoritative enable subnet 192.168.4.0/27 { default-router 192.168.4.1 dns-server 192.168.150.237 dns-server 192.168.150.238 domain-name cityofconway.local lease 86400 start 192.168.4.5 { stop 192.168.4.30 } unifi-controller 192.168.150.181 } } shared-network-name LAN2 { authoritative enable subnet 192.168.4.32/27 { default-router 192.168.4.33 dns-server 192.168.150.237 dns-server 192.168.150.238 domain-name cityofconway.local lease 86400 start 192.168.4.37 { stop 192.168.4.62 } unifi-controller 192.168.150.181 } } use-dnsmasq disable } dns { forwarding { cache-size 150 listen-on eth1 listen-on eth2 } } gui { http-port 80 https-port 443 older-ciphers enable } nat { rule 5010 { description "masquerade for WAN" outbound-interface eth0 type masquerade } } ssh { port 22 protocol-version v2 } } system { domain-name xxxxxxxxxxxx.local gateway-address <"gateway IP of ISP"> host-name station4 login { user xxxxxxxxxx { authentication { encrypted-password<"removed for security"> plaintext-password "" } full-name "xxx xxxxxxxxx" level admin } user xxxxxx { authentication { encrypted-password<"removed for security"> } full-name "xxxxx xxxxx" level admin } } name-server 192.168.150.237 name-server 192.168.150.238 ntp { server 0.ubnt.pool.ntp.org { } server 1.ubnt.pool.ntp.org { } server 2.ubnt.pool.ntp.org { } server 3.ubnt.pool.ntp.org { } } offload { hwnat disable ipsec enable } syslog { global { facility all { level notice } facility protocols { level debug } } } time-zone America/Chicago } vpn { ipsec { auto-firewall-nat-exclude disable esp-group ubnt-pa-esp { compression disable lifetime 86400 mode tunnel pfs dh-group2 proposal 1 { encryption aes128 hash sha1 } } ike-group ubnt-pa-ike { ikev2-reauth no key-exchange ikev1 lifetime 86400 proposal 1 { dh-group 2 encryption aes128 hash sha1 } } ipsec-interfaces { interface eth0 } logging { log-level 0 log-modes dmn } site-to-site { peer <"external IP of paloalto"> { authentication { id <"external IP of EdgeRouter"> mode pre-shared-secret pre-shared-secret xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx remote-id <"external IP of paloalto"> } connection-type initiate default-esp-group ubnt-pa-esp ike-group ubnt-pa-ike ikev2-reauth inherit local-address <"external IP of EdgeRouter"> vti { bind vti0 esp-group ubnt-pa-esp } } } } } /* Warning: Do not remove the following line. */ /* === vyatta-config-version: "config-management@1:conntrack@1:cron@1:dhcp-relay@1:dhcp-server@4:firewall@5:ipsec@5:nat@3:qos@1:quagga@2:system@4:ubnt-pptp@1:ubnt-util@1:vrrp@1:webgui@1:webproxy@1:zone-policy@1" === */ /* Release version: v1.9.0.4901118.160804.1131 */