If a PC dials into the Internet, it will take the IP layer-3 packet, and encapsulate it according to the WAN technology in use. Normally for dialup links, this will be PPP encapsulation instead of Ethernet.
well u know that router is a l3 device . coz it works on the basis of l3 information..ip addresses.but router is receiveing data from ethernet. which is a layers 2 technology..after receiving frame it strip oof the frame header and check the destinantion address. and then it looks into the routing table.from routing table it gets the route as well as the interface from where it has to go now. coz now router is again handling packet to a datalink .. coz packet never moves. so it have to convert it again into frame.. according to the link on which it is going... thats why router is performing encapsulation and as at every interface it perform the same function...
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