A scalable video decoding system for decoding a video bitstream for an image block, comprising: a low resolution decoder, including: a motion vector resolution reducer for receiving decoded high resolution motion vectors included in the video bitstream and for reducing an accuracy of the high resolution motion vectors to correspond to a low resolution, a motion compensator, in signal communication with said motion vector resolution reducer, for forming a motion compensated low resolution prediction using the reduced accuracy motion vectors, an adder, in signal communication with said motion compensator, for adding a low resolution prediction residual to the motion compensated low resolution prediction to form a low resolution decoded image block; and a high resolution decoder, including: an upsampler for upsampling the low resolution prediction residual to form an upsampled prediction residual, a second motion compensator for forming a motion compensated full resolution prediction, using the high resolution motion vectors, and a second adder (1020, 1025), in signal communication with said upsampler and said second motion compensator, for adding the upsampled prediction residual to the motion compensated full resolution prediction to form a full resolution decoded image block. a low resolution decoder, including: a motion vector resolution reducer for receiving decoded high resolution motion vectors included in the video bitstream and for reducing an accuracy of the high resolution motion vectors to correspond to a low resolution, a motion compensator, in signal communication with said motion vector resolution reducer, for forming a motion compensated low resolution prediction using the reduced accuracy motion vectors, an adder, in signal communication with said motion compensator, for adding a low resolution prediction residual to the motion compensated low resolution prediction to form a low resolution decoded image block; and a motion vector resolution reducer for receiving decoded high resolution motion vectors included in the video bitstream and for reducing an accuracy of the high resolution motion vectors to correspond to a low resolution, a motion compensator, in signal communication with said motion vector resolution reducer, for forming a motion compensated low resolution prediction using the reduced accuracy motion vectors, an adder, in signal communication with said motion compensator, for adding a low resolution prediction residual to the motion compensated low resolution prediction to form a low resolution decoded image block; and a high resolution decoder, including: an upsampler for upsampling the low resolution prediction residual to form an upsampled prediction residual, a second motion compensator for forming a motion compensated full resolution prediction, using the high resolution motion vectors, and a second adder (1020, 1025), in signal communication with said upsampler and said second motion compensator, for adding the upsampled prediction residual to the motion compensated full resolution prediction to form a full resolution decoded image block. an upsampler for upsampling the low resolution prediction residual to form an upsampled prediction residual, a second motion compensator for forming a motion compensated full resolution prediction, using the high resolution motion vectors, and a second adder (1020, 1025), in signal communication with said upsampler and said second motion compensator, for adding the upsampled prediction residual to the motion compensated full resolution prediction to form a full resolution decoded image block.