Video codecs that use motion compensation benefit greatly from the development of algorithms for near-optimal intra/inter mode switching within a rate-distortion framework. A separate development has involved the use of multiple-frame prediction, in which more than one past reference frame is available for motion estimation. In this paper, we show that using a dual-frame buffer (one short-term frame and one long-term frame available for prediction) together with intra/inter mode switching improves the compression performance of the coder. We improve the mode-switching algorithm with the use of half-pel motion vectors. In addition, we investigate the effect of feedback in making more informed and effective mode-switching decisions. Feedback information is used to limit drift errors due to packet losses by synchronizing the long-term frame buffers of both the encoder and the decoder.