Jerry,
Please run the Path Distance tool with your input stream as the feature source, and your DEM as the Surface Raster. Do not use a cost raster. Without a cost associated you basically get the surface distance from each cell to the nearest source. Then just reclassify, use con statements, use the classfied render with specific class breaks (multi-ring buffer type look), and keep it in raster form or convert specific classes to polygons if you really needed a polygon buffer.
Regards,
Eric