Is there an IOS update that will allow me to provide vlan tunneling on an ethernet port of a 7204VXR? I do see that the "Software Advisor" does say that vlan tunneling is available in an IOS for the 7200 series router, but all I have been hearing is that the option may be there, but the hardware does not support it. I have NPE-225 at CPE-7204VXR that will tunnel customer vlans into my network vlan. I hope.
VPLS is not supported but you shouldn't need it. IF all you need is a point-to-point tunnel over an IP network I would suggest you to investigate L2TPv3 it can be very effective and can be per vlan specific (you can decide what vlans are carried over the L2TPv3 tunnel on a per subinterface basis).
Given your hardware you should be aware that this solution is good only for a moderate amount of traffic.
Hope to help
This does help. I was hoping that I could get away from defining each incoming vlan on its own subinterface. Basically, we are tunneling our customer's vlans across our provider network and they have a range of about 200 vlans. It is too bad that the 7200 does not yet do q-in-q on its ethernet ports. I do see the command is there is some IOS versions, but from what I understand it is not yet supported. Is this correct?
you probably mean stacked vlans
Someone has reported to have used it on C7200 with late 12.4T but they had better processors.
However, 200 Vlans in a C7204VSR with only an NPE 225 let me say that even if supported you are likely to face performance issues on the box.
It is not only a question of how long it takes to configure but 200 Vlans can use all 7200 resources just to propagate broadcast traffic !
Hope to help