This book presents the investigative work on an advanced video coder based on the structure of a classical predictive coding scheme, substituting two basic components: a) motion prediction is made with triangle meshes instead of blocks; b) transform coding is realized with discrete wavelet transform instead of DCT. These parts have been investigated separately by many scientists but never before in combination. Within this framework, the author investigated the individual processing of arbitrarily shaped regions with the aim of preferential coding. Here, different types of regions were considered: pre-segmented objects, and regions created with help of the triangle mesh. The mesh regions extract skin-colored areas, or those with a high prediction error to code them with preference in order to achieve locally higher subjective qualities. Results show, that the combination of mesh-based motion prediction and wavelet transform yields better subjective and objective image coding quality than either of them in combination with a block-based technique.