A method of and apparatus for transmitting video images preferably allows a specially trained individual to remotely supervise, instruct, and observe administration of medical tests conducted at remote locations. This apparatus preferably includes a source device, a transmitting device, and at least one remote receiving device. Preferably, the transmitting device and the remote 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 remote receiving device either for live display through the source device or for pre-recorded display through a video recorder device. The remote 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, an angioplastigram, and the like. This medical test device preferably generates video images for the transmitting device. The transmitting device captures the video images in real-time from the source device and compresses these video images utilizing a compression algorithm prior to transmitting data representing the video images to the remote receiving device. Remote users utilizing the remote receiving devices are capable of remotely controlling a number of parameters relating to the source device and the transmitting device. Such parameters include image quality, storage of the video images on the transmitting device, manipulating and controlling the source device, and the like.