A new retransmission-based error control technique is presented that does not incur any additional latency in frame playout times, and hence are suitable for interactive applications. It takes advantage of the motion prediction loop employed in most motion compensationbased codecs. By correcting errors in a reference frame caused by earlier packet loss, it prevents error propagation. The technique rearranges the temporal dependency of frames so that a displayed frame is referenced for the decoding of its succeeding dependent frames much later than its display time. Thus, the delay in repairing lost packets can be e ectively masked out. The developed technique is combined with layered video coding to maintain consistently good video quality even under heavy packet loss. Through the results of extensive Internet experiments, the paper shows that layered coding can be very e ective when combined with the retransmissionbased error control technique for low-bit rate transmission over best ...