honeyd

Small daemon that creates virtual hosts simulating their services and behaviour
  http://www.honeyd.org
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Honeyd is a small daemon that creates virtual hosts on a network. the hosts can be configured to run arbitrary services, and their tcp personality can be adapted so that they appear to be running certain versions of operating systems. honeyd enables a single host to claim multiple addresses on a lan for network simulation. it is possible to ping the virtual machines, or to traceroute them. any type of service on the virtual machine can be simulated according to a simple configuration file. instead of simulating a service, it is also possible to proxy it to another machine.

features:
* simulates thousands of virtual hosts at the same time.
* configuration of arbitrary services via simple configuration file:
o includes proxy connects.
* simulates operating systems at tcp/ip stack level:
o fools nmap and xprobe,
o adjustable fragment reassembly policy,
o adjustable fin-scan policy.
* simulation of arbitrary routing topologies:
o configurable latency and packet loss.