  We have constructed an efficient source of photon pairs using a
waveguide-type nonlinear device and performed a two-photon interference
experiment with an unbalanced Michelson interferometer. Parametric
down-converted photons from the nonlinear device are detected by two detectors
located at the output ports of the interferometer. Because the interferometer
is constructed with two optical paths of different length, photons from the
shorter path arrive at the detector earlier than those from the longer path. We
find that the difference of arrival time and the time window of the coincidence
counter are important parameters which determine the boundary between the
classical and quantum regime. When the time window of the coincidence counter
is smaller than the arrival time difference, fringes of high visibility
(80$\pm$ 10%) were observed. This result is only explained by quantum theory
and is clear evidence for quantum entanglement of the interferometer's optical
paths.
