One of the most surprising consequences of quantum mechanics is the entanglement of two or more distance particles. Even though there are still questions regarding the fundamental issues of quantum theory, quantum entanglement has started to play important roles in practical engineering applications such as quantum information processing, quantum metrology, quantum imaging and quantum lithography. Two-photon states have been the most popular entangled states in fundamental and applied research. Using spontaneous parametric down conversion as an example, this review introduces the concept of biphoton wavepacket and emphasizes the very different physics associated with the entangled two-photon system (pure state) and with the `individual' subsystems (statistical mixture). Experimental approaches for Bell state preparation, pumped by continous wave and ultrashort pulse are discussed.