I have been able to successfully configure it (although I have to say this is not a good design). Observe:
interface Loopback0 ip address 10.255.255.1 255.255.255.255 ! interface Tunnel1 ip address 192.168.12.1 255.255.255.0 tunnel source Loopback0 tunnel destination 10.255.255.2 ! interface Tunnel11 ip address 188.8.131.52 255.255.255.0 tunnel source Tunnel1 tunnel destination 192.168.12.2 ! interface FastEthernet0/0 ip address 10.1.12.1 255.255.255.0 ! ip route 10.255.255.2 255.255.255.255 10.1.12.2
interface Loopback0 ip address 10.255.255.2 255.255.255.255 ! interface Tunnel1 ip address 192.168.12.2 255.255.255.0 tunnel source Loopback0 tunnel destination 10.255.255.1 ! interface Tunnel11 ip address 184.108.40.206 255.255.255.0 tunnel source Tunnel1 tunnel destination 192.168.12.1 ! interface FastEthernet0/1 ip address 10.1.12.2 255.255.255.0 ! ip route 10.255.255.1 255.255.25.5255 10.1.12.1
These two routers are, for this lab purposes, directly connected via FastEthernet links. The first tunnel is Tun1, the second tunnel passing through the first one is Tun11. Notice Tun11 uses the Tun1's IP as its source, and the opposite Tun1's IP address as its destination, thereby existing exclusively in Tun1's namespace.
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