We report measurements of two-photon interference using a cw-pumped type-II spontaneous parametric down-conversion source based on a multimode perodically poled potassium titanyl phosphate waveguide. We have used the recently demonstrated technique of controlling the spatial characteristics of the down-conversion process via intermodal dispersion to generate photon pairs in fundamental transverse modes, thus ensuring their spatial indistinguishability. Good spatial overlap of photon modes within pairs has been verified using the Hong-Ou-Mandel interferometer and the preparation of polarization entanglement in the Shih-Alley configuration, yielding visibilities consistently above 90%.
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