Disclosed is a system and method for handling a plurality of connection requests made for a plurality of virtual machines with a single physical machine. A system and method are disclosed for distributing virtual connections among a plurality of physical machines some or all of which are configured to handle connections for more than one virtual machine. In one embodiment, a packet translation system for handling connections from clients on an external network to a plurality of IP addresses with a server having a server IP address and a server port number includes a client interface to the external network. The client interface is operative to receive and send packets to and from a remote client. A server interface is operative to receive and send packets to and from the server and the server is operative to establish a connection with the remote client. A packet interceptor is operative to intercept incoming packets received at the client interface which have a packet destination IP address and a packet destination port number corresponding to a virtual machine IP address and a virtual machine port number which is supported by the packet translation system. A packet header translator is operative to translate the packet destination IP address and the packet destination port number of packets forwarded by the packet interceptor to a physical machine IP address and a physical machine port number that corresponds to the server IP address and the server port number of the server. The server port runs a real process corresponding to a virtual process simulated on the virtual port number. As a result, the packet translation system receives packets at the client interface and the packet destination IP address and the packet destination port number corresponding to the virtual machine IP address and the virtual machine port number are translated to the server IP address and the server port number and the packets are forwarded to the server via the server interface.