  We present a fiber based source of polarization-entangled photon pairs that
is well suited for quantum communication applications in the 1550nm band of
standard fiber-optic telecommunications. Polarization entanglement is created
by pumping a nonlinear-fiber Sagnac interferometer with two time-delayed
orthogonally-polarized pump pulses and subsequently removing the time
distinguishability by passing the parametrically scattered signal-idler photon
pairs through a piece of birefringent fiber. Coincidence detection of the
signal-idler photons yields biphoton interference with visibility greater than
90%, while no interference is observed in direct detection of either the signal
or the idler photons. All four Bell states can be prepared with our setup and
we demonstrate violations of CHSH form of Bell's inequalities by up to 10
standard deviations of measurement uncertainty.
