Engineering and technology educators continually strive for realistic, hands-on laboratory exercises to enhance their students' learning. This research describes the redesign of an undergraduate introductory computer networking course to include new weekly virtual laboratory assignments that culminate in a 'real world' final project of configuring a 'corporate' network. The use of an Internet testbed technology named ISEAGE allows students to design and implement fully functional networks using public IP space that is contained in the testbed. To the students, it appears as if they were directly connected to the Internet while still being protected. This paper shows that 'real world' projects using virtual lab technology can have a positive effect both on objective networking knowledge, as well as subjective self-assessments of self-efficacy with regard to implementing the technology. It also demonstrates that 'real world' final projects encourage student thinking at upper levels of Bloom's taxonomy.