What is MPLS Layer 2 VPN and how is it different from MPLS layer 3 VPN?

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http://serverfault.com – There is quite an amount of buzz in the telecommunications industry about MPLS. I am able to understand how an MPLS works over an IP network (MPLS L3). But, what is an MPLS layer 2 network and how is it different from an MPLS L3 network? Some pointers to relevant sites will also be highly appreciated. (HowTos)