We report the experimental transformation of quadrature entanglement between two optical beams into continuous variable polarization entanglement. We extend the inseparability criterion proposed by Duan et al. [Phys. Rev. Lett. 84, 2722 (2000)]] to polarization states and use it to quantify the entanglement. We propose an elaboration utilizing two quadrature entangled pairs for which all three Stokes operators between a pair of beams are entangled.