This paper presents analysis of a congestion control scheme in which a multiplexer notifies upstream traffic sources when its buffer level crosses a preset threshold. Upon notification, the traffic streams are reshaped to a form less likely to cause overflow through rate or burstiness restrictions, or a combination of the two. For the analysis, the traffic is modeled by two Markov Modulated Rate Processes (MMRP's), one for above and one for below the threshold, and an iterative fluid approximation technique is used to determine the buffer occupancy distribution. Simulation results verify the accuracy of the approach, and the analysis is used to study the effect of varying the threshold and shaping function.