I am setting up a small MPLS VPN Lab using two 6500s running SXI2, utilizing two VRFs. It worked beautifully when the next hop was the interface address of the other. Now I am having trouble using the attached configuration using next hop of loopbacks.
As you can see, BGP seems to be doing its job, propogating the routing table on each, but for some reason my VRF pings across the mpls link are failing(global pings work fine). Something tells me this is the problem:
Router#sh ip cef vrf TEST1 10.1.0.2
nexthop 10.255.255.2 Port-channel1 unusable: no label
Any help would be greatly appreciated. :-) See attachement for relevant configuration and show commands.
Let's try to return to the config where your BGP routers were peered using their Loopback0 interface as that is the correct way to peer BGP routers, especially with MPLS VPNs.
The output of the "show mpls ldp binding" from the attached file suggests that the second router did not send you the label mapping for its 10.0.0.2/32 loopback address. Were the two routers successfully running the LDP protocol? Did they identify themselves correctly as LDP neighbors? That would be the first thing I would test right now. You absolutely need to see the output similar to this one:
tib entry: 10.0.0.2/32, rev 6
local binding: tag: 16
remote binding: tsr: 10.0.0.2:0, tag: imp-null
i.e. the "remote binding" line must be present. If we get this one, we may test it again and go further.