Assign your pptp client an IP in a completely different (3rd) subnet. Assign the local side an IP in that same subnet. ie, 192.168.50.1 & 192.168.50.2. Now, you are just like anyone else being routed.
Sam how is the remote pptp client then going to know how to get to the local network behind the router if the address it's given is not in that subnet? Surely this request will be redirected via it's default gateway (which is not the PPTP link in order for them to use their own internet access for everything other than the VPN traffic).
So is it simply a case of either;
1. leave the 'use default gateway of remote network' on and then you don't have to set proxy=arp on the router interface
or
2. tick off 'use default gateway of remote network' and then you need to use proxy-arp and the same subnet as the remote lan.
or
3. tick off 'use default gateway of remote network', use a different subnet than the remote lan and don't use proxy-arp but create a static route on the client for access to the remote lan.