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The main contributions of this paper are two-fold. First, we prove fundamental, similarly behaving lower and upper bounds, and give an approximation based on the bounds, which is effective for analyzing ATM multiplexers, even when the traffic has many, possibly heterogeneous, sources and their models are of high dimension. Second, we apply our analytic approximation to statistical models of video teleconference traffic, obtain the multiplexing system's capacity as determined by the number of admissible sources for given cell-loss probability, buffer size and trunk bandwidth, and, finally, compare with results from simulations, which are driven by actual data from coders. The results are surprisingly close. Our bounds are based on large deviations theory. The main assumption is that the sources are Markovian and time-reversible. Our approximation to the steady-state buffer distribution is called Chenoff-dominant eigenvalue since one parameter is obtained from Chernoffs theorem and the other is the system's dominant eigenvalue. Fast, effective techniques are given for their computation. In our application we process the output of variable bit rate coders to obtain DAR(1) source models which, while of high dimension, require only knowledge of the mean, variance, and correlation. We require cell-loss probability not to exceed 10-6 , trunk bandwidth ranges from 45 to 150 Mb/s, buffer sizes are such that maximum delays range from 1 to 60 ms, and the number of coder-sources ranges from 15 to 150. Even for the largest systems, the time for analysis is a fraction of a second, while each simulation takes many hours. Thus, the real-time administration of admission control based on our analytic techniques is feasible