Hello,
Please see RFC 4762 section 10.1.1
http://tools.ietf.org/html/rfc4762#section-10.1.1
For each VPLS service, a single spoke PW is set up
between the MTU-s and the PE-rs based on [RFC4447].
Hence, PE1-rs has a full PW mesh on right side (2 PW, 1 towards PE2-rs and 1 towards PE3-rs) and >1 PW in hub-spoke fashion on left side, towards MTU-s (1 per VPLS service). Therefore, to provide VPLS services, PE1-rs has to pass Ethernet frames between right-side PW and left-side PW. By default, to achieve loop-free VPLS operation, passing frames between PW is prohibited.
To allow that, different PW requiring frame passing between themselves have to be put in different mesh-groups.
HTH
Thanks
Alex