A novel video coding scheme based on the blocking regional wavelet transform and overlapped motion compensation is researched in this paper. Several new or improved algorithms are proposed. The high-energy regions of interframe predicted difference are first detected using a hierarchical sliding-window region forming algorithm. The regional border is processed to reduce ringing-effects. Wavelet decomposition and quantization are carried out only for these regions. A quantization model based on HVS spatiality-frequency and time-frequency features is used in the coding algorithm. An improved single-pass scanned zero-tree is employed to represent quantized wavelet coefficients. This scheme reduces the bit rate by about 36%-51% or gets a distinct improvement in decoding video quality by cutting down ringing-effects at the same bit rate compared with traditional wavelet-based coding algorithms. Simulation results show acceptable image quality for CIF resolution at low bit-rate and very low bit-rate.
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