We have successfully implemented in our labs the generation, transmission, detection and routing of optical packets for next generation all-optical networks ..Ultrafast switching function (mus time base) is demonstrated using a RF frequency tone as header, combined with a high-capacity digital payload, both inserted in the optical packet. The packet may propagate kilometers in the network, without degrading. At node input the optical packet header is detected and a switching control mechanism directs the packet to a prescribed output, without further opto-electric conversion. The optical circuit is noise-free, with BER results better than 10^-12 .This system is applicable to metropolitan and access WDM optical networks style.