There are many ways to build up traffic models for VBR video sources. A frequently applied methodology is to use mathematical analysis based on realistic assumptions to set up a source model that generates traffic according to a stochastic process. In this case, the critical issue is the validation of the synthetic trace by comparing statistics to results obtained from measurements on the real source. In this paper, we choose a different and more practical approach to model the behavior of the real traffic source. Our model building philosophy is that we analyze and understand what happens with the video information on its way from the ingress to the multimedia terminal to the egress of the network card. Throughout this journey the information is processed by several mechanisms and we build an empirical model step by step based on our measurement-based observations. Besides understanding the traffic generation procedure, statistical analysis of VBR traffic traces captured from a number of video sequences was also carried out in several scenarios. Using the knowledge of encoding, encapsulation and scheduling processes and results of the trace analysis, a hierarchical source model is set up for modeling the multimedia terminal. Thereby our model imitates the generation of video frames and the inner working of each level of protocol hierarchy and tries to reproduce the complex behavior of the real source. We use the leaky bucket analysis for verification of the model in order to capture directly the behavior of the traffic in a queue.