This article describes how virtualization technology can provide a solution to the difficulties in teaching, learning, and assessing students' performance in computer networking subjects. The focus of this article is to show how virtualization technology can provide students with hands-on practice, can largely reduce the need for physical resources, can improve teaching effectiveness, and can provide unique assessment opportunities that would not be available with physical computers in a laboratory. Several techniques used to provide in-depth assessment of learning outcomes are described. A sample assignment is also included.