Traffic monitoring is of major importance for enforcing traffic management policies. To ac-complish this task, the detection of vehicle can be achieved by exploiting image analysis techniques. In this paper, a solution is presented to obtain various traffic parameters through vehicular video de-tection system(VVDS). VVDS exploits the algorithm based on virtual loops to detect moving vehicle in real time. This algorithm uses the background differencing method, and vehicles can be detected through luminance difference of pixels between background image and current image. Furthermore a novel technology named as spatio-temporal image sequences analysis is applied to background differencing to improve detection accuracy. Then a hardware implementation of a digital signal pro-cessing (DSP) based board is described in detail and the board can simultaneously process four-channel video from different cameras. The benefit of usage of DSP is that images of a roadway can be processed at frame rate due to DSP's high performance. In the end, VVDS is tested on real-world scenes and experiment results show that the system is both fast and robust to the surveillance of transportation.