VLAN Membership

I'm trying to learn about VLANs and am confused about membership.  I understand port based and MAC address based membership, but what I'm interested in is IP subnet based.  Figure 17-1 in the link below is exactly what I'm trying to do:

How do you define subnet/VLAN membership?

The switch I'm using is the Netgear FSM726:

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I believed figure 17-1 is the basic vlan configuration.

You assign ports into diff vlans. (e.g. VLAN 10 , 20 , 30)
Then for each vlan you use a seperate subnet... VLAN 10 -, VLAN 20 -, VLAN 30 -

Then at the L3 switch or a cisco router, you create the gateway for the 3 vlan.
Interface vlan 10
  ip address
Interface vlan 20
  ip address
Interface vlan 30
  ip address

then they should be able to route between each other. U need to enable ISL or 802.1Q for the trunking port carrying all 3 vlan to the core L3 switch or router.


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