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Can I use this software without an internet connection?

And if I understood correctly the software will simulate an special IP-adress, an address which simulates an internet connection so applications which need to have an IP Adress think that I am connected with the internet.

Is this correct?

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From what I gather from the limited information about this tool, it intercepts the local PC's IP stack and masquerades the outgoing packets with a public IP address (presumably that of the WAN interface of the NAT router).

This is solving a problem that doesn't exist any more with modern routers.

The write up suggests that the client (or the NAT router) on the private LAN would be leaking it's private RFC1918 address to devices outside of its network.

Modern routers (in fact even NAT DSL routers I bought back in 2001, before that application was written) present the router's public or WAN IP address(es) to remote services when outbound connections are made. If a FTP client behind a NAT router is using Active or Port mode, modern routers know that the inbound connection from the FTP server is for that particular client and will map the connection back to the client.

So unless you're using some ancient NAT router from the days of the ark, I wouldn't bother wasting any time with this.

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The VLIP software is used for tricking a program on your computer into thinking your local computer's IP is different than what it actually is. Computers on a LAN normally have a 1918 address (192.168.x.x, 172.16.x.x, or 10.x.x.x, basically those); then a NAT router connects the LAN to the Internet. If you run a program on your computer however, that program will see your IP as the one local the the computer, one that isn't Internet routable. In the early days of the net, nobody used 1918 Addresses + NAT, they used a routable IP; software could usually count on your local IP being routable. This software commonly broke when using the internal address. The VLIP software "fixed" this problem by telling the software that your local IP is the routable IP from your Router (instead of your actual internal IP). This allowed the software to see a routable IP, and work as intended.

Now for your actual question: No, VLIP has nothing to do with not actually having an Internet connection. It's simply for masking how your Internet connection works.

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Yes but it says

Your PC seems to directly connect to Internet

So I thought that this tool would simulate an Internetconnection to the application for example net meeting.

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