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Continuous variable polarization states have attracted much attention due to their apparent applicability to quantum information networks. Polarization entanglement was presented by transformation of the well-known quadrature entanglement onto the polarization basis. The inseparability criteria as well as the EPR paradox criteria for Stokes operators were also demonstrated. In this paper the generation of such highly quantum correlated states using the interference of two fiber-based polarization squeezing sources is presented. This squeezing can be efficiently created based on the nonlinear effect experienced by ultra-short pulses in fused silica fibers. Two linearly orthogonal polarized modes with identical amplitudes propagate through a polarization maintaining fiber, they experience the same nonlinearity and the phase of the interference between them is controlled to achieve circularly polarized light at the output.