The data flowing through a pipeline consists of a combination of buffers and events. Buffers contain the actual media data. Events contain control information, such as seeking information and end-of-stream notifiers. All this will flow through the pipeline automatically when it's running. This chapter is mostly meant to explain the concept to you; you don't need to do anything for this.
Buffers contain the data that will flow through the pipeline you have created. A source element will typically create a new buffer and pass it through a pad to the next element in the chain. When using the GStreamer infrastructure to create a media pipeline you will not have to deal with buffers yourself; the elements will do that for you.
A buffer consists, amongst others, of:
Pointers to memory objects. Memory objects encapsulate a region in the memory.
A timestamp for the buffer.
A refcount that indicates how many elements are using this buffer. This refcount will be used to destroy the buffer when no element has a reference to it.
The simple case is that a buffer is created, memory allocated, data put in it, and passed to the next element. That element reads the data, does something (like creating a new buffer and decoding into it), and unreferences the buffer. This causes the data to be free'ed and the buffer to be destroyed. A typical video or audio decoder works like this.
There are more complex scenarios, though. Elements can modify buffers in-place, i.e. without allocating a new one. Elements can also write to hardware memory (such as from video-capture sources) or memory allocated from the X-server (using XShm). Buffers can be read-only, and so on.