We have experimentally demonstrated polarization entanglement using
continuous variables in an ultra-short pulsed laser system at telecommunication
wavelengths. Exploiting the Kerr-nonlinearity of a glass fibre we generated a
polarization squeezed pulse with S2 the only non-zero Stokes parameter thus S1
and S3 being the conjugate pair. Polarization entanglement was generated by
interference of the polarization squeezed field with a vacuum on a 50:50 beam
splitter. The two resultant beams exhibit strong quantum noise correlations in
S1 and S3. The sum noise signal of S3 was at the respective shot noise level
and the difference noise signal of S1 fell 2.9dB below this value