The invention presents new methods of compression, transmission, and decompression of video signals providing increased speed and image quality. Methods based on wavelet transformation with decimation and time stamping can provide one-pass encoding of signals in which the amount of bits of information needed to be transmitted can be substantially reduced, thereby increasing the speed of transmission of digital signals over networks. Decompressing signals, along with interpolation methods to re-create portions of images of lesser importance in visual perception, can provide coordinated video and audio presentations of high quality in real-time over all kinds of networks.