C Williams,
there are many documents on Cisco's website covering this subject.
I use vpls within my P core network using a manual configuration. ie lets say you have 8 routers in a mesh and you want to create a vpls instance for vlan 400.
Using ES20 cards on a 7600 router the configs look like this.
R1
l2 vfi vlan400 manual
vpn id 400
neighbor ip-address(R2)
...
...
neighbor ip-address(R8)
each neighbor statement creates a l2 connection from R1. Do this on all routers. Thats it
you can also us iBGP to make this an auto connection.
Be aware if you are not using the ES20+ cards and SRE, MAC learning occurs with the xconnect statement.
The new configuration uses 802.1ah or MACinMAC so all the MAC address for a specific location is represented by 1 MAC address.
Regards
Jude Bryant
Network Engineer
Pioneer Telephone