VIDEO CODING METHOD AND APPARATUS WITH MOTION COMPENSATION AND MOTION VECTOR ESTIMATOR

A video coding method according to the present invention is adapted to predictively code each target block within a target frame relative to a reference frame. The method includes the steps of: a) calculating an estimate of the target block based on pixel values within the target block; b) calculating respective correction values for the target block and a predicted block associated with the target block, the predicted block being generated from the reference frame by motion compensation; c) correcting the pixel values within the target and predicted blocks using the respective correction values, and calculating a predicted error based on a difference between each said pixel value within the corrected target block and an associated one of the pixel values within the corrected predicted block; d) determining a coding mode based on the estimate of the target block and the predicted error; and e) coding the target block in accordance with the coding mode determined.