I need a basic laymans explanation as to the difference between a
layer 2 router and layer 3 router.

travis..

Thanks for your question.  There are 7 layers in the OSI (Open Systems
Interconnection) Model.  The first 4 layers are the Transport Set and
the last 3 are the application set.

Layer 2 is the data layer.  This is the where the type of network is
defined. Layer 3 is the network layer and this determines the way the
data will be sent. Layer 2 is commonly referred to as switching and
Layer 3 is referred to as routing.  With this in mind, there is no
such thing as a Layer 2 router, but there is such a thing as a Layer 3
switch.  Therefore, I am assuming your question is the differences
between a Layer 2 switch and a Layer 3 switch.

"When a router receives a packet, it looks at the Layer 3 source and
destination addresses to determine the path the packet should take. A
standard switch relies on the MAC addresses to determine the source
and destination of a packet, which is Layer 2 (Data) networking. The
fundamental difference between a router and a Layer 3 switch is that
Layer 3 switches have optimized hardware to pass data as fast as Layer
2 switches, yet they make decisions on how to transmit traffic at
Layer 3, just like a router. Within the LAN environment, a Layer 3
switch is usually faster than a router because it is built on
switching hardware."
Howstuffworks.com
How LAN Switches Work
http://www.howstuffworks.com/lan-switch7.htm

Basically, the key difference between a Layer 2 switch and Layer 3
switch is that layer 3 switches were designed to provide greater
performance at a lower price than traditional routers and they have
some of the features and functionality of a router on the switch.

Thank you again for your question.  If you need any additional
clarification, please let me know.

Regards,

-THV

Search Strategy:
difference between layer 2 and layer 3

References:
Layer 3 Switching
http://www.computerworld.com/networkingtopics/networking/lanwan/story/0,10801,43488,00.html

What is the Difference between Layer 3 Switching and a Switching
Router?
http://www.foundrynet.com/services/faqs/switchingRouter.html

Much more through and informative then I expected. I will use Googel answers again.

travis2,

Thank you for the rating and the generous tip!  I am glad I was able to help.

Regards,

-THV