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Topological difference between P2P network and underlying IP network is creating inefficient network resource usage as well as low application performance. To improve this situation, this paper proposes the network aware peer selection methods applicable to P2P file sharing. We compare the peer selection methods that use RTT, Window-size and path available bandwidth. Path available bandwidth can be estimated with small measurement traffic by using packet pair measurement. Firstly, we examine the accuracy of packet pair based path bandwidth estimation and then apply it to the peer selection problem with some modifications. Building a large-scale hierarchical P2P and router network simulator, we validate the effectiveness of packet pair measurement based peer selection method, and reveal that it can achieve better characteristics than RTT and/or Window-size based peer selection.