Abstract: A data networking system and method which allows efficient use of bandwidth for data streams such as video and audio. This invention allows network nodes to dynamically identify changing network conditions which are typical on wireless and power line networks. The system and method dynamically adapt to the changes which affect network bandwidth by changing compression rates, compression types, audio/video quality, motion masks, throughput for specific connections, or mass storage of data streams until the network is capable of sending the data. The result is an improved system that requires little or no user intervention as network conditions change.