This paper contains two contributions to very-low-bitrate video coding. First, we show that in contrast to common practice incremental techniques for rate-distortion optimization such as the generalized BFOS algorithm may clearly outperform the standard technique based on Lagrangian multipliers. This is relevant in cases where the computation of RD-points has a low complexity. Second, we report on recent progress of our ongoing research evaluating the prospects of adaptive vector quantization (AVQ) for verylow-bitrate video coding. In contrast to conventional state-of-the-art video coding based on entropy coding of motion compensated residual frames in the frequency domain, adaptive vector quantization offers the potential to adapt its codebooks to the changing statistics of image sequences. The basic building blocks of our current AVQ video codec are (1) block-based coding in the wavelet domain where wavelet coefficients correspond to (overlapping) spatial regions, (2) hierarchical ...