The work in this thesis explore the DWT based video coding by the introduction of a novel DWT (Discrete Wavelet Transform) / MC (Motion Compensation) / DPCM (Differential Pulse Code Modulation) video coding framework, which adopts the EBCOT as the coding engine for both the intra- and the inter-frame coder. The adaptive switching mechanism between the frame/field coding modes is investigated for this coding framework. The Low-Band-Shift (LBS) is employed for the MC in the DWT domain. The LBS based MC is proven to provide consistent improvement on the Peak Signal-to-Noise Ratio (PSNR) of the coded video over the simple Wavelet Tree (WT) based MC. The Adaptive Arithmetic Coding (AAC) is adopted to code the motion information. The context set of the Adaptive Binary Arithmetic Coding (ABAC) for the inter-frame data is redesigned based on the statistical analysis. To further improve the perceived picture quality, a Perceptual Distortion Measure (PDM) based on human vision model is used for the EBCOT of the intra-frame coder. A visibility assessment of the quantization error of various subbands in the DWT domain is performed through subjective tests. In summary, all these findings have solved the issues originated from the proposed perceptual video coding framework. They include: a working DWT/MC/DPCM video coding framework with superior coding efficiency on sequences with translational or head-shoulder motion; an adaptive switching mechanism between frame and field coding mode; an effective LBS based MC scheme in the DWT domain; a methodology of the context design for entropy coding of the inter-frame data; a PDM which replaces the MSE inside the EBCOT coding engine for the intra-frame coder, which provides improvement on the perceived quality of intra-frames; a visibility assessment to the quantization errors in the DWT domain
