Abstract: A method and apparatus for detecting and reporting flow imbalance of a data stream. A grab rate signal is generated measuring the rate at which a source machine can sequence and compress data from an input. Next, an outflow rate is generated measuring the rate at which the source machine can transmit the compressed data out to a network. When the compressed data arrives at a destination machine from the network, an arrival rate signal is generated measuring the rate at which the destination machine can re-sequence the compressed data for playback and decompression. Finally, a play rate signal is generated measuring the rate at which the destination machine can decompress and play the data to an output. The four rates are used in determining a flow imbalance signal and reporting the imbalance so that the user may correct any deficiencies in the data stream by modifying the quality/size or compression method used for the data transaction from the source.