A 192.168.x.x address is a private address, meaning that it will not be routed out on the internet. In general,
any properly configured internet router will drop a message destined for 192.168.x.x into the bit bucket. There
are several other private spaces, including 10.x.x.x. These spaces are used within an organization so that
they don't have to use up 'real' (i.e. routable) internet addresses for all the devices on their network.
The router between your internal network and the internet will do something called Network Address Translation,
NAT, where the 192.168.x.x addresses are translated into routable addresses as required. If you connect to
a web server that is internal to your company, there is no translation; you connect to 192.168.1.6, for example,
and it sees your computer as 192.168.1.7. When you connect to an external webserver, the router will translate
your 192.168.1.7 into a routable internet address, so the webserver you connect to will see your request as
coming from 209.137.185.23 (for example). When that external webserver responds to that address, the router
will convert the addresses back to 192.168.1.7 and send the packet on to your computer.
VPNs work as kind of another layer on top of NAT. Imagine location A with an internal address space of
192.168.4.x and location B with an internal address space of 192.168.7.x. Each has an internet router
that does NAT as above. Each of the routers also knows of the private ip space that the other has.
When a device at location A (192.168.4.x) sends a message to an address at location B (192.168.7.x),
the routers communicate directly with each other and translate the addresses appropriately. If you were
looking at the internet connection between the routers, the translated packet would probably also be
encrypted.
There is a good picture here, about half way down under 'VPN Technology Examples':
http://www.draytek.co.uk/products/about_vpn.html
Some more background:
http://www.iec.org/online/tutorials/vpn/index.html
Matt