  We have experimentally demonstrated the efficient creation of highly
entangled bipartite continuous variable polarisation states. Exploiting an
optimised scheme for the production of squeezing using the Kerr non-linearity
of a glass fibre we generated polarisation squeezed pulses with a mean
classical excitation in S3. Polarisation entanglement was generated by
interfering two independent polarisation squeezed fields on a symmetric beam
splitter. The resultant beams exhibit strong quantum noise correlations in the
dark S1 - S2 polarisation plane. To verify entanglement generation, we
characterised the quantum correlations of the system for two different sets of
conjugate Stokes parameters. The quantum correlations along the squeezed and
the anti-squeezed Stokes parameters were observed to be -4.1 +/- 0.3 dB and
-2.6 +/- 0.3 dB below the shot noise level respectively. The degree of
correlations was found to depend critically on the beam splitting ratio of the
entangling beam splitter. Carrying out measurements on a different set of
conjugate Stokes parameters, correlations of -3.6 +/- 0.3 dB and -3.4 +/- 0.3
dB have been observed. This result is more robust against asymmetries in the
entangling beam splitter, even in the presence of excess noise.
