Networking with network-route
network-route is the original option chosen by the Xen team (and few have used it since). It works by creating an internal IP router, which forwards traffic to and from the guest domains. Note that it doesn't do address translation—for that you'll want network-nat, or virbr. It has largely been superseded by network-bridge, which allows considerably more flexibility.
network-route does have its place, however. For one thing, it is transparent to the upstream network hardware, unlike network-bridge. For another thing, it's much simpler. network-route simply enables IP forwarding and then creates iptables rules in the dom0 to forward traffic to the correct virtual interfaces.
To use network-route, just uncomment the lines ...
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