Is it possible to make a GRE tunnel between a dedicated linux machine and a vmware vsphere guest VM (running debian wheezy)?
closed as not a real question by Michael Hampton♦, Ward, Falcon Momot, MadHatter, Chopper3 May 26 at 12:12
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Yes, of course it's possible.
A virtual machine runs the same kernel as a physical machine, has the same network stack, and the same concept of a network interface which its traffic goes in and out of.
The VMWare vSwitch is a software implementation of a network switch, so is the Linux bridge driver used in KVM.
If you search Google for "linux gre tunnel" you'll find many copy-paste examples.