Linux Virtual Network Device

[Matthias-Christian Ott <matthias.christian@tiscali.de>]

Hi!
I have the following the problem:
I have server which is connected to the internet via a gateway, on this 
server I want to run some uml machines. I want "equip" every uml machine 
with virtual network device (virX [e.g.; the name doesn't matter]). The 
virtual devices should be something like the "lo" device and their ip 
addresses shouldn't be used by the internet (I'm looking for something 
like 127.0.0.1). I want to give each uml machine a host name (e.g. 
xxx.myserver.mydomain.com), requests should be masqueraded (by bind or 
dnsmasq?) by their dns name (1.myserver.mydomain.com is 127.0.0.2 
[vir0]). How to do this?

Links or Tutorials are welcome (I just found some outdated stuff on the 
uml website)

Thanks
Matthias-Christian Ott