This chapter discusses various issues related to the shaping of Motion Picture Experts Group (MPEG) video for generating constrained or controlled variable bit rate (VBR) data streams. MPEG-2 defines a set of standards for coding and compression of digital video. VBR video can offer constant picture quality without incorporating too much processing overhead in the network or transmission system’s architecture. In addition, they can offer substantial (20% to 50%) savings in both storage and transmission bandwidth requirements compared to constant bit rate (CBR) video. Either source coding or encoder’s output shaping or a combination of both can be used for adapting the MPEG-2 video streams for transmission over real-time VBR (rt-VBR)-type asynchronous transfer mode (ATM) channel.