A method of and apparatus for capturing and processing Continuous media-based data streams transmitted over an IEEE 1394 serial bus manages the use of both receive buffers and process buffers in order to minimize the amount of captured data that is discarded due to unavailable process buffers. When receiving a stream of continuous data. the data is captured and stored within a current receive buffer. When the current receive buffer is full. the captured data within the receive buffer is then read out, processed and stored within a process buffer, if a process buffer is available on a cached list of process buffers. When Full of processed data, the process buffer is then transferred to an application for utilization or further processing of the processed data. If the process buffer is not completely filled, then the process buffer is added back to the cached list of process buffers. If a receive buffer is tilled and no process buffer is available or if there are already filled receive buffers on a cached list of receive buffers, the filled receive buffer is then added to the cached list of receive buffers. When a process buffer is then available, the data within the earliest filled receive buffer on the cached list of receive buffers is processed and transferred to the available process buffer. If the receive buffer is not emptied, the receive buffer is then put back on the cached list of receive buffers. When the cached list of receive buffers includes a predetermined number of buffers. the data within the earliest filled receive buffer on the cached list of receive buffers is discarded. thereby emptying the receive buffer. The emptied receive buffer is then added to the series of available receive buffers to receive the current captured data.