When designing an encoder for a real-time video application over a wireless channel, we must take into consideration the unpredictable fluctuation of the quality of the channel and its impact on the transmitted video data. This uncertainty motivates the development of an adaptive video encoding mechanism that can compensate for the infidelity caused either by data loss and/or by the post-processing (error concealment) at the decoder. In this paper, we first explore the major factors that cause quality degradation. We then propose an adaptive progressive replenishment algorithm for a packet loss rate (PLR) feedback enabled system. Assuming the availability of a feedback channel, we discuss a video quality assessment method, which allows the encoder to be aware of the decoder-side perceptual quality. Finally, we present a novel dual-feedback mechanism that guarantees an acceptable level of quality at the receiver side with modest increase in the complexity of the encoder.