One embodiment of the system for processing digital signals includes a pointer
follower ("PF") to receive a first digital signal. The first digital signal can
have a first embedded payload, a first signal frame and a first PF pointer. The
first pointer follower can extract the first embedded payload and forward the first
embedded payload to an elastic buffer. The elastic buffer is operable to receive,
delay and forward the first embedded payload. Additionally, a pointer generator
("PG") is operable to receive the first embedded payload from the elastic buffer,
construct a new digital signal comprising a new signal frame, a PG pointer and
the first embedded payload. The location of the new signal frame is determined
by a synchronization pulse received from a synchronization module. In a further
embodiment of the present invention, the delay imposed by the elastic buffer can
depend upon the offset between the PG pointer and the PF pointer.