This report describes the process of developing and evaluating a component based overlay with the intention of creating a configurable, reusable and extensible implementation. This is done through the use of a new fine grained component architecture accompanied by a surrounding framework to support the interconnection of these components. Through the use of this framework it is then possible to dynamically interchange and reuse components to allow overlays to adapt to their environment through the use of different components. An implementation of the Pastry overlay is then carried out using this approach, allowing a thorough evaluation of the effectiveness of the methodology described in the report.