To find good trade-offs between the rate-distortion efficiency of motion-co
mpensated discrete-cosine-transform video coding and its computational comp
lexity, we explore a scheme which uses an adaptive displacement vector fiel
d for motion compensation. The sampling density of the field is nonuniform
and is adapted to the image scene using a Lagrangian optimization algorithm
. The algorithm is formulated to minimize an overall distortion for a given
bit rate constraint on the video frame. The algorithm takes into account t
he contributions to the overall bit rate and distortion due to motion vecto
r and prediction residual coding. Our simulation results demonstrate that f
or various common video sequences, the proposed scheme outperforms a popula
r H.263 test model by about 0.5 dB of peak signal-to-noise ratio. Significa
nt reduction in coding artifacts is observed and visual quality improvement
is highly palpable. The work demonstrates that a suitably crafted rate-dis
tortion optimization scheme can improve performance without exacerbating co
mplexity. (C) 1998 SPIE and IS&T. [S1017-9909(98)00703-X].