Application Level Framing (ALF) was proposed by Clark and Tennenhouse as an important concept for developing high performance applications. ALF relies in part on the ability of applications and protocols to process packets independently one from the other. Thus, performance gains one might expect from the use of ALF are clearly related to performance gains one might expect from applications that can handle and process packets received out-of-sequence, as compared to applicatiojn that require in-order delivery (FTP, TELNET, etc.). In this paper, we examine how the ability to process out-of-sequence packets impacts the efficiency of data transmission. We consider both the impact of application parameters such as the time to process a packet by the application, as well as transmission parameters such as transmission delay, loss rate and flow and congestion control characteristics. The performance measure of interest are total latency, buffer requirements, and jitter. We show, using experimental and simulation results, that out-of-sequence processing is beneficial only for very limited ranges of transmission delays and application processing time. We discuss the impact of this on the architecture of communication systems dedicated to distributed multimedia applications.