IPSec iterated tunneling

Hi all

I want to set up a LAN-to-LAN scenerio in which I have a policy between 
the two edge gateways across the Lan
also an end to end security policy between the clients which are behind 
the  gateways.

For eg:

Client1---Gateway1===================Gateway2-----Client2

Policy between Gateway 1-Gateway 2 AH tunnel mode.
Policy between Client 1 - Client 2 ESP transport mode.

I am setting the policy at both the gateways: bypass IPSec ESP transport 
mode between client 1 and client 2. Will this suffice ?

What extra functionality/configuration has to be done at the 
gateways/clients to do this ?

Thanks in advance
Puja Puri