Capacity analysis and call admission control in wireless communication systems are essential for system design and operation. The capacity for imperfectly power controlled multimedia code division multiple access (CDMA) networks based on system outage probability constraint is presented and analyzed. A handoff prioritized call admission scheme is then developed based on the derived system capacity and evaluated using the K-dimensional birth-death process model.A more general assumption that average channel holding times for new calls and handoff calls are not equal and an effective approximate model are adopted in the performance analysis. Numerical examples are given to demonstrate the system performance in terms of blocking probabilities, resource utilization and average system throughput. It is shown that the system parameters such as outage probability constraint and power control errors have great impact on system capacity and performance.