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The emergence of broadband ISDN as the network for the future brings with it the promise of integration of all proposed services in a flexible environment. In order to achieve this flexibility, asynchronous transfer mode (ATM) has been proposed as the transfer technique. During this period a study was conducted on the bridging of network transmission performance and video coding. The successful transmission of variable bit rate video over ATM networks relies on the interaction between the video coding algorithm and the ATM networks. Two aspects of networks that determine the efficiency of video transmission are the resource allocation algorithm and the congestion control algorithm. These are explained in this report. Vector quantization (VQ) is one of the more popular compression techniques to appear in the last twenty years. Numerous compression techniques, which incorporate VQ, have been proposed. While the LBG VQ provides excellent compression, there are also several drawbacks to the use of the LBG quantizers including search complexity and memory requirements, and a mismatch between the codebook and the inputs. The latter mainly stems from the fact that the VQ is generally designed for a specific rate and a specific class of inputs. In this work, an adaptive technique is proposed for vector quantization of images and video sequences. This technique is an extension of the recursively indexed scalar quantization (RISQ) algorithm.