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In this paper we propose real-time methods for flexible processing of multimedia streaming in resource constrained systems. Video streams are dynamically adapted to match available system resources in small, embedded devices, such as as mobile phones and PDAs. Real-time admission control and resource reservation mechanisms ensure that media processing fully utilize the available system resources, while keeping the best possible video quality. First, we apply our methods on a single device, and then we extend it to handle distributed, heterogeneous systems where several devices share same resources. Results of simulation study show the effectiveness of our methods.