The way conventional Ethernet is used today differs in two aspects from how dedicated system area networks are used. Firstly, dedicated system area networks are lossless and only drop frames when bit errors occur, while conventional Ethernet drop frames whenever congestion occur. Secondly, these networks are either deadlock free or use mechanisms which avoids deadlock situations, while still using all available links. Ethernet avoids deadlocks by using a spanning tree protocol which turns any topology into a tree. A drawback of this approach is that we are left with a lot of unused links and thus wasting resources. In this paper we describe how to obtain a lossless deadlock free network with the best possible performance, while adhering to the current Ethernet standard and using off-the-shelf Ethernet equipment. We achieve this by introducing flow control in all network nodes and by taking control over the routing algorithm. Also, we use TCP to illustrate the effect of flow control o...