This document proposes a method for link virtualization on the Xen virtualization platform using Single Root I/O Virtualization (SR-IOV). It discusses using SR-IOV to minimize overhead by performing encapsulation/decapsulation and packet filtering in hardware. It also describes using MAC-in-UDP tunneling with a virtual network ID to isolate networks and a vARP protocol to map between virtual and physical MAC addresses. The document evaluates the proposed method's ability to guarantee bandwidth isolation and provides performance results for both weight-based and bandwidth-based bandwidth control approaches.