All medical imaging systems suffer from the effects of acquisition noise, channel noise, and fading. When decisions relevant to these image data are taken, any deviation from real values could affect the decisions made. Additionally, detecting anomalies from image data requires special processing to go behind the surface data. We have developed computationally low power, low bandwidth, and low cost filters (DMAW) that will remove the noise, compress the image, and decompose the image so that a decision can be made by looking at different layers of image data. This wavelet-based method is guaranteed to converge to a stationary point for both uncorrelated and correlated image data. Presented here is the theoretical background with examples showing the performance and merits of this novel approach compared to other alternatives.