Abstract: A method of and apparatus for transmitting video images allows a viewer to receive at a receiving display device, all or a selected portion of a video stream of frames, in a storage-efficient format from a transmitting device and view the received video stream of frames before the transmission is complete. The video system also allows a viewer to receive at the receiving device, all or a selected portion of a video stream of frames, in a high-resolution format, by marking sections of interest within the received stream of frames in the storage-efficient format and requesting enhancement of those marked sections of interest. This apparatus preferably includes a source device, a transmitting device and at least one receiving device. Preferably, the transmitting device and the receiving device communicate over a network such as the Internet Protocol network. Alternatively, the transmitting device and the receiving device communicate over any appropriate data network.