Rmason,
The 7600 (or do i mean 6500) is just a big ethernet switch with routing built in. The 6704 card you mentioned is a "LAN card" that does not have enhanced processing capabilities (you can do ethernet trunking/switching or routing on this, which really extends an internal vlan to your sup, see show vlan usage internal). You can accomplish VPLS on a 7600 by using either an ES20/ES40 card or a SIP with an ethernet SPA. The switching happens locally on these cards (using its network processor) by attaching an SVI to the VFI (Cisco speek for VPLS instance) to allow mac learning.
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