In previous work, we have reported on the benefits of noise reduction prior to coding of very high quality images. Perceptual transparency can be achieved with a significant improvement in compression as compared to error free codes. In this paper, we examine the benefits of pre-processing when the quality requirements are not very high, and perceptible distortion results. The use of data dependent anisotropic diffusion that maintains image structure, edges, and transitions in luminance or color is beneficial in controlling the spatial distribution of errors introduced by coding. Thus, the merit of preprocessing is for the control of coding errors. In this preliminary study, we only consider preprocessing prior to the use of the standard JPEG and MPEG coding techniques.Keywords: image coding, video coding, image processing, inhomogeneous diffusion.We study the pre-processing of images and video in two ways. First, by examining the effect of pre-processing on still image quality, as measured by a recently developed perceptually based picture quality scale (PQS). Second, we examine the effect of pre-processing on video coding performance, where noise has a more substantial effect, because the redundancy reduction sought by interframe coding is limited by the unpredictability of the noise from frame to frame. We evaluate the bit rates of encoded pre-processed and original video and compare for the same bit rate the quality of the resulting images either subjectively, using the PSNR, or objectively. We also examine briefly the benefits of post processing . We show an example of reduction of the blocking effect prevalent in DCT that is incorporated in the JPEG and MPEG standards. 22 /SPIE Vol. 2564 O-8194-1923-O/95/$6.OO Downloaded From: http://proceedings.spiedigitallibrary.org/ on 06/16/2016 Terms of Use: http://spiedigitallibrary.org/ss/TermsOfUse.aspx SPIE Vol. 2564 /27 Downloaded From: http://proceedings.spiedigitallibrary.org/ on 06/16/2016 Terms of Use: http://spiedigitallibrary.org/ss/TermsOfUse.aspx