In one aspect of a preferred embodiment, the present invention comprises a system for video compression comprising a video preprocessor; a predictor configured to receive video data from the preprocessor; and an encoder configured to communicate with the predictor. Preferably, the preprocessor comprises a colorspace converter, a frame activity detector, and a subsampler, the predictor comprises a frame differencer and a reference frame handler, and the encoder comprises an error image encoder and an image adder. In another aspect, the invention comprises a system for video decompression comprising a predictor and a decoder configured to communicate with the predictor. Preferably, the predictor comprises a reference frame handler and wherein said decoder comprises an error image decoder and a colorspace converter.