An improved image processing system involves decoding compressed image data including
frequency domain coefficients defining blocks of pixel values representing an image
at a first resolution to provide an image at a reduced second resolution for display
from a selected sub-set of the frequency domain coefficients. The apparatus includes
an enhanced motion-compensation-unit (MCU) operating with blocks of pixel values
representing an image at an intermediate third resolution lower than the first
resolution but higher than the reduced second resolution.