Abstract: A compression and decompression method using a wavelet decomposition, frequency based tree encoding, tree based motion encoding, frequency weighted quantization, Huffman encoding, and tree based activity estimation for bit rate control. Forward and inverse quasi-perfect reconstruction transforms are used to generate the wavelet decomposition and to reconstruct data values close to the original data values. The forward and inverse quasi-perfect reconstruction transforms utilize special filters at the boundaries of the data being transformed and/or inverse transformed.