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. The transmitting device transmits the video images to the receiving device for display and storage at the receiving device. The receiving device is also capable of communicating with the transmitting device while simultaneously receiving video images. The source device is preferably a medical test device such as an ultrasound, a sonogram, an echocardiogram, and the like. Alternatively, the source device can be any video capture or storage device capable of sourcing a stream of video frames.