How to Install Microsoft Windows XP Loopback Adapter

A virtual adapter is a PROGRAM, a piece of software, that is installed as a device driver but it fakes the presence of a physical device and allows you to use it as a it where a real device. There are no limitation or differences between virtual and physical, as the mode it works or protocols.?

FOR WHAT IS THIS GOOD ?!?!!

For virtualization (vmware, oreacle, qemu, ...) where, some times, you need more that one virtual adapter.
For a VPN (Virtual Private Network) like a secure and encrypted connection between more computers over the internet or another unsecure network like a wifi, power line, ...
For software testing and debugging and mutch more.

In the pictures below is shown, in a simple way how it works (the pictures are not my :P )

Source: http://www.instructables.com/id/How-to-Install-Microsoft-Windows-XP-Loopback-Adapt/

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