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In this paper, we investigate how to adapt different parameters in H.263 source coding, transport processing and error concealment to optimize end-to-end video quality at different bitrates and packet loss rates for H.323-based packet video. First, different intra coding patterns are compared and we show that the contiguous rectangle or square block pattern offers the best performance in terms of video quality in the presence of packet loss. Second, the optimal intra coding frequency is found for different bitrates and packet loss rates. The optimal number of GOB headers to be inserted in the source coding is then determined. The effect of transport processing strategies such as packetization and retransmission is also examined. For packetization, the impact ofpacket size and the effect ofmacroblock segmentation to picture quality are investigated. Finally, we show that the dejitter buffering delay can be used to the advantage for packet loss recovery with video retransmission without incurring any extra delay.