To evaluate the server performance and forecast capacity requirements, we carry out simulation of Multimedia-on-demand(MOD) server. In multimedia service environment, especially for on-demand service, one of the key problems is capacity planning, which requires ensuring that adequate computer resources will be available to meet the future workload demands in a cost-effective manner. In this paper, we design and implement a simulation model for MOD server with failures of components (e.g., processors, disks and networks). By acquisition of utilization and queue length parameters, we can estimate desirable capacity of server components with various arrival rates of customers and failure rates of components. For a given failure probability, we also compute packet delay probability and reliability of the server. It is possible to derive some important design information of the MOD server by using the above parameters.