Many of the burst assembly algorithms employed in optical burst switching (OBS) networks preserve the IP traffic self-similarity property in the burst traffic. We introduce a mathematical model for performance evaluation of an OBS core node employing either no, a partial or a full wavelength conversion strategy. The model assumes long-range dependent (LRD) traffic arrivals to the OBS intermediate node whose inter-arrival times are accurately modeled by a Pareto distribution, whereas exponential holding times are assumed. In our proposed model, each output port in the node is modeled as a GI/M/w/w queue with partial server accessibility. An imbedded Markov chain approach is used to derive the limiting state probability distribution for the number of bursts currently served by an output port as seen by arriving bursts. Next, the average burst loss probability is evaluated from steady-state occupancy probabilities. In addition, the results of our mathematical model are validated via simulation. Furthermore, the results of the model are compared with those when assuming short-range dependent Poisson arrivals. Comparison shows that traditional Poisson traffic models yield over-optimistic performance measures compared to the LRD Pareto traffic models, especially for light traffic scenarios. Furthermore, we study the impact of varying different traffic parameters, such as the average arrival rate and the Hurst parameter, on the burst loss probability. Finally, the impact of varying the wavelength conversion capability on the burst loss probability is studied, where we compare two strategies for contention resolution: adding new channels (wavelengths) or adding wavelength converters, while taking the cost into consideration.