An apparatus for processing packets in a multimedia terminal has a media access controller to send and receive packets from a network. A digital signal processor converts a series of incoming real-time transfer protocol packets into an incoming digital signal and converts an outgoing digital signal into a series of outgoing real-time transfer protocol packets. A compression-decompression unit decompresses the incoming digital signal and generates an output signal to an output device and compresses an input signal from an input device and generates an outgoing digital signal. A central processing unit sends and receives transmission control protocol packets. The apparatus can store a packet in one of a plurality of queues in a buffer and assign a priority to the packet based on whether the packet is a real-time transfer protocol packet or a transfer control protocol packet.