Anson, >From the top of my head (I can't verify anymore, no access to z900 lpars left), both layer 2 and layer modi should be supported (if you are current enough on your OSA microcode level). But what won't work on a z900, is sharing the osa with layer 2 and layer 3 traffic. As I recall, the first to connect to the OSA could set the mode (2 or 3) and all other shared connections have to use the same mode (just like the portname). The restriction got lifted with z990, there you can use the same shared OSA, mixing layer 2 and layer 3 connections.
Ronald van der Laan