A theoretical framework is presented that connects "classic" fluorescence c
orrelation spectroscopy (FCS) treating averages of many freely diffusing mo
lecules and FCS single-molecule analysis. By assuming a general two-state e
mission dynamics of the single molecule, expressions describing the autocor
relation of the total fluorescence fluctuations are derived. By studying an
idealized experimental situation, the relation between signal-to-noise and
signal-to-background ratios are discussed. Under appropriate conditions it
is possible to make statistically feasible measurements of single molecule
dynamics despite low signal-to-background. The quantum yield ratio of the
background molecules to the single molecule as well as the position of the
single molecule inside the detection volume are crucial in obtaining good s
ignal-to-noise ratios in single-molecule experiments.