I am investigating why we, as an enterprise, should move toward MPLS. What benefit does it give you? Anyone implements MPLS (not buying MPLS service) on their network and do you notice any difference? Do you gain any more speed? Are you able to control traffic better than tuning/redesigning IGP? Why QoS on MPLS is better? Please let me know. Thank you!
I am glade that it all makes sense to you now, please review the book i told you about for further knowledge, as for your question, the answer will be YES, in order to isolate the customers traffic and permit address space overlap you'll have to configure VRF-Lite all the way until the final CE.
HTH, please rate if it does helps.