This thesis is devoted to the problems of defining and developing the basic building blocks of an automated surveillance system. As its initial step, a background-modeling algorithm is described for segmenting moving objects from the background, which is capable of adapting to dynamic scene conditions, as well as determining shadows of the moving objects. After obtaining binary silhouettes for targets, object association between consecutive frames is achieved by a hypothesis-based tracking method. Both of these tasks provide basic information for higher-level processing, such as activity analysis and object identification. In order to recognize the nature of an event occurring in a scene, hidden Markov models (HMM) are utilized. For this ai...