The Triaxial Projected Shell Model (TPSM) has been successful in providing a microscopic description of the energies of multi-phonon vibrational bands in deformed nuclei. We report here on an extension of the TPSM to allow, for the first time, calculations of B(E2) values connecting γ-and γγ-vibrational bands and the ground state band. The method is applied to 166,168 Er. It is shown that most of the existing B(E2) data can be reproduced rather well, thus strongly supporting the classification of these states as γ-vibrational states. However, significant differences between the data and the calculation are seen in those B(E2) values which involve odd-spin states of the γ-band. Understanding these discrepancies requires accurate experimental measurements and perhaps further improvements of the TPSM. PACS: 21.60. Cs, 21.10.Re, 21.10.Ky, 27.70.+q Recently two-phonon γγ-vibrational bands have been identified in a number of nuclei [1][2][3], where pronounced anharmonicities have been observed in the vibrational spectrum. A microscopic description of the energies and transition probabilities of two-phonon vibrational excitations remains a challenge to nuclear models. The Triaxial Projected Shell Model [4,5] is a new microscopic, fully quantum-mechanical model with a unified treatment of the vibrational and rotational states. In the TPSM approach, one introduces triaxiality in the deformed basis and performs exactly three-dimensional angular momentum projection [4]. In this way, the deformed vacuum state is much enriched by allowing all possible Kcomponents. Diagonalization mixes these components, and various excited bands emerge [5] besides the ground state (g.s.) band (K = 0). The excited K = 2 band describes the one-phonon γ-vibrational band; and the excited band with K = 4 accounts for the two-phonon γγ-band. The observed anharmonicities in the energies of multi-phonon vibrational bands occur quite naturally from the TPSM without including additional ingredients in the model [5]. The TPSM has recently been applied also to the study of transition quadrupole moments in the g.s. bands of γ-soft nuclei and the magnetic dipole properties of the γ-vibrational states [6,7]. However, inband and inter-band E2-transitions, which are important quantities in supporting classification of states, have not been studied yet.The purpose of this paper is to report a new extension of the TPSM which allows the calculation of B(E2) values for transitions connecting the g.s. band, the single γ, and double γγ vibrational bands. We have searched the entire rare-earth region for experimental inter-band B(E2) values that allow a comparison with our calculations. Data on absolute B(E2) values are sparse and only in few cases they are known for more than one or two members of the γ-band. In this paper we study B(E2) values for 166,168 Er, which are the best cases. These nuclei exhibit well established double-phonon excitations [2,3].168 Er is one of the most extensively studied nuclei in this mass region with several measured B(E2) value...