The introduction of the MPEG-4 standard for interactive digital video necessitates investigations of the properties of MPEG-4 video streams and their processing and transport in distributed systems. Of special importance are the issues affecting MPEG-4 video applications, such as the functionality of network software layers and their impact on the overall quality of service (QoS). In this paper we present an analysis, based on simulation modeling, of the processing and transport of MPEG-4 video in computer clusters connected with multihop ATM networks. Through simulation experiments we obtain results for the QoS parameters (transfer delay, jitter, and the loss rate of cells), average buffer occupancy in the ATM multiplexers along the path of the video streams, and the influence of the AAL protocol layers on the performance of the transfer.