We discuss the mechanism of fast and slow light generation when optical pulses propagate through a fiber taper coupled to an ultrahigh-Q microsphere system in the time domain. Fast and slow light are explained as interference effects between ballistic light through the fiber and circulated light within the sphere. One of the striking effects predicted by this model is dynamic pulse splitting in the transmitted pulse at the critical coupling condition, where the coupling strength between the sphere and fiber equals the round-trip loss in the sphere. By realizing this critical coupling condition experimentally, we observed this dynamic pulse splitting effect.