We present measurements of the polarization correlation and photon statistics of photon pairs that emerge from a laser-pumped warm rubidium vapor cell. The photon pairs occur at 780 nm and 1367 nm and are polarization entangled. We measure the autocorrelation of each of the generated fields as well as the cross-correlation function, and observe a strong violation of the two-beam Cauchy-Schwartz inequality. We evaluate the performance of the system as source of heralded single photons at a telecommunication wavelength. We measure the heralded autocorrelation and see that coincidences are suppressed by a factor of approximate to 20 from a Poissonian source at a generation rate of 1500 s(-1), a heralding efficiency of 10%, and a narrow spectral width. (C) 2011 Optical Society of America