This research addresses two related problems in the design and management in integrated high-speed communication networks. The first problem is to analyze and develop the tools required to support and operate hierarchical source routing algorithms currently under consideration for private and future public ATM networks. This approach to routing aims to simplify the operation of large-scale networks by introducing hierarchical structure and attempts to ensure Quality of Service (QoS), prior to transmitting connection requests, via source routing. Using a combination of stochastic modeling and optimization techniques the principle investigator will study various approaches to estimating, and periodically advertising available capacity, as well as to hierarchically aggregating state information. The second problem to be investigated concerns the design of performance oriented embedded (virtual) networks on an ATM backbone. For specific types of services, such as interactive video, the PI will explore various architectures and complementary management schemes which meet overall performance requirements and maximize throughput/revenue. This work will be extended to address, services requiring heterogeneous resource bundles such as on-line services, distributed computing, and database applications requiring consistent high-levels of performance and for which the use of a dedicated virtual network is justified.