A new approach to determining the admissibility of variable bit rate (VBR) traffic in buffered digital networks is developed. In this approach all traffic presented to the network is assumed to have been subjected to leaky-bucket regulation, and extremal, periodic, on-off regulated traffic is considered; the analysis is based on fluid models. Each regulated traffic stream is allocated bandwidth and buffer resources which are independent of other traffic. Bandwidth and buffer allocations are traded off in a manner optimal for an adversarial situation involving minimal knowledge of other traffic. This leads to a single-resource statistical-multiplexing problem which is solved using techniques previously used for unbuffered traffic. VBR traffic is found to be divisible into two classes, one for which statistical multiplexing is effective and one for which statistical multiplexing is ineffective in the sense that accepting small losses provides no advantage over lossless performance. The boundary of the set of admissible traffic sources is examined, and is found to be sufficiently linear that an effective bandwidth can be meaningfully assigned to each VBR source, so long as only statistically-multiplexable sources are considered, or only nonstatistically-multiplexable sources are considered. If these two types of sources are intermixed, then nonlinear interactions occur and fewer sources can be admitted than a linear theory would predict. A qualitative characterization of the nonlinearities is presented. The complete analysis involves conservative approximations; however, admission decisions based on this work are expected to be less overly conservative than decisions based on alternative approaches.>