Buffer Using a DEM

[RobertLogan1]

I am doing some habitat modeling that relies on distance to critical resources on a landscape as a key indicator of animal locations.  I want to create a buffer zone around a series of points but want to have the distances of the buffer zones be based on actual overland distance using a DEM not just linear "as the crow flies" distance.

Any thoughts?

[markdenil]

I would suggest a cost surface based on slope.
...or using Euclidean distance.

[ChrisSnyder]

I think the tool you want is Path Distance: http://resources.arcgis.com/en/help/main/10.1/index.html#//009z0000001q000000