Not so fast... there are various issues thrown up becaues we can't use 127.0.0.1 - however it can be sorted out:
1. Install vtun on one vserver to use as the server, and on one vserver to use as the client. Make sure that both servers have the capabilities CAP_SYS_ADMIN, CAP_MKNOD, CAP_NET_ADMIN,CAP_NET_RAW . Make a new interface in /etc/
Restart the VServer
2.On both the client and the server edit /etc/ssh/sshd_config and add:
GatewayPorts yes
This is important because we need to be able to specify the IP address to use for a 'local IP' address intead of 192.168.1.1 Restart sshd.
3. on the server start vtund:
vtund -s -f /etc/vtund-server.conf
If you don't have configs yet see: http://www.linuxjournal.com/article/6675
4.on the client use ssh to create a tunnel:
ssh -L CLIENTIP:5000:SERVERIP:5000
Where 5000 is the port number being used on the server as per the config file
5. on the client run vtund
vtund -f /etc/vtund-client.conf my_tunnel CLIENT_HOSTNAME
And presto - if it all worked one should have an interface tun0 on both machines that can be used to transparently pass data between them.