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A virtual LAN is any broadcast domain that is partitioned and isolated in a computer network at the data link layer. LAN is an abbreviation of local area network. Short for virtual LAN, a VLAN is a network of computers that behave as if they are connected to the same wire even though they may actually be physically located on different segments of a LAN. VLANs are configured through software rather than hardware, which makes them extremely flexible. One of the biggest advantages of VLANs is that when a computer is physically moved to another location, it can stay on the same VLAN without any hardware reconfiguration.

HOWTO: Set Using The Command Line

sudo apt-get install vlan
sudo vconfig add eth0 1
sudo ifconfig eth0.1 netmask broadcast up
sudo ifconfig eth0.1