One promising switching technology for wavelength-division multiplexing optical networks is optical burst switching (OBS). However, there are major deficiencies of OBS. (1) The delay offset between a control message and its corresponding data burst is based on the diameter of a network. This affects network efficiency, quality-of-service, and network scalability.( 2) OBS adopts one-way resource reservation scheme, which causes frequent burst collision and, thus, burst loss. We address the above two important issues in OBS. In particular, we study how to improve the performance of delay and loss in OBS. To reduce the end-to-end delay, we propose a hybrid switching scheme. The hybrid switching is a combination of lightpath switching and OBS switching. A virtual topology design algorithm based on simulated annealing to minimize the longest shortest path through the virtual topology is presented. To minimize burst collision and loss, we propose a new routing algorithm, namely, p-routing, for OBS network. The p-routing is based on the wavelength available probability. A path that has higher available probability is less likely to drop bursts due to collision. The probability-based p-routing can reduce the volatility, randomness, and uncertainty of one-way resource reservation. Our studies show that hybrid switching and p-routing are complementary and both can dramatically improve the performance of OBS networks.