Can anybody explain the concept of VRF lite and how it works, and the ordering / hardware/software related stuff?
VRF lite allows you to enable seperate routing tables per VRF without requiring a label or tag protocol. The VRF intelligence will be specific only to the router configured with VRFs and will not dynamically update neighbors with any information specific to the configured VRF. Think of the newly created vrf routing tables similar to ships in the night. Each VRF will have it's own seperate routing table. Their will still be a global routing table. The show ip route command can be used to see these routes and there will be a seperate VRF routing table for each VRF. The show ip route vrf "vrfname" will be used to see these routes. VRFs can be assigned to interfaces/sub-interfaces on the router.
Steve Lyons - Cisco