The X-Bone dynamically deploys and manages Internet overlays to reduce configuration effort and increase network component sharing. The X-Bone discovers, configures, and monitors network resources to create overlays over existing IP networks. Overlays are useful for deploying overlapping virtual networks on shared infrastructure and for simplifying topology. The X-Bone's two-layer IP in IP tunneled overlays support existing applications and unmodified routing, multicast, and DNS services in unmodified host operating systems. This two-layer scheme uniquely supports node revisitation and recursive overlays, which is critical for fault tolerance and dynamic relocation. The X-Bone uses multicast to simplify resource discovery, and provides secure deployment as well as secure overlays (VPNs). WWW: http://www.isi.edu/xbone/