Performance evaluation and trade-off analysis are the central issues in the design of communication networks. Simulation plays an important role in computer-aided design and analysis of communication networks and related systems, allowing testing of numerous architectural configurations and fault scenarios. We are using the Block Oriented Network Simulator (BONeS, Comdisco, Foster City, CA) software package to perform discrete, event- driven Monte Carlo simulations in capacity planning, tradeoff analysis and evaluation of alternate architectures for a high-speed, high-resolution teleradiology project. A queuing network model of the teleradiology system has been devise, simulations executed and results analyzed. The wide area network link uses a switched, dial-up N X 56 kbps inverting multiplexer where the number of digital voice-grade lines (N) can vary from one (DS-0) through 24 (DS-1). The proposed goal of such a system is 200 films (2048 X 2048 X 12-bit) transferred between a remote and local site in an eight hour period with a mean delay time less than five minutes. It is found that: (1) the DS-1 service limit is around 100 films per eight hour period with a mean delay time of 412 +/- 39 seconds, short of the goal stipulated above; (2) compressed video teleconferencing can be run simultaneously with image data transfer over the DS-1 wide area network link without impacting the performance of the described teleradiology system; (3) there is little sense in upgrading to a higher bandwidth WAN link like DS-2 or DS-3 for the current system; and (4) the goal of transmitting 200 films in an eight hour period with a mean delay time less than five minutes can be achieved simply if the laser printer interface is updated from the current DR-11W interface to a much faster SCSI interface.