-- This paper proposes a Wyner-Ziv / H.264 transcoder that enables low cost video applications. The proposed solution supports video encoding on resource constrained devices such as disposable video cameras, network camcorders and low cost video encoders. This approach is based on reducing encoding resource requirements on a device by using Wyner-Ziv video encoding. The system shifts the burden of complexity away from the encoder, for example to a network node, where a transcoder efficiently converts WZ encoded video to H.264 by reusing the information from the WZ decoding stage. The transcoded H.264 video is requires fewer resources than WZ decoding and therefore reduces the complexity of decoding. The complexity of encoding and playback ends of video applications is thus reduced enabling new class of consumer application. The paper is focused on reducing the complexity of the macro-block mode coding decision process carried out in H.264 encoding stage of the transcoder. Based on a da...