A network services processor receives, stores, and modifies incoming packets and transmits them to their intended destination. The network services processor stores packets as buffers in main and cache memory for manipulation and retrieval. A memory subsystem stores packets as linked lists of buffers. Each bank of memory includes a separate memory management controller for controlling accesses to the memory bank. The memory management controllers, a cache management unit, and free list manager shift the scheduling of read and write operations to maximize overall system throughput. For each packet, packet context registers are assigned, including a packet handle that points to the location in memory of the packet buffer. The contents of individual packets can be accessed through the use of encapsulation pointer registers that are directed towards particular offsets within a packet, such as the beginning of different protocol layers within the packet.