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This paper presents a generalized queueing model and an algorithm to obtain the best performance with the optimized embedded buffers in MPEG-2 codec designs. A generalized queueing model is proposed to apply not only to the MPEG-2 codec system, but also to other MPEG applications, like HDTV [1] and MPEG-4. The searching algorithm is developed to find the optimal solution efficiently by exploring the correlation between buffers and system performance. The local optimum is guaranteed.