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Motion-compensated prediction of video is formulated as a novel vector quantization scheme called motion filter vector quantization (MFVQ). In MFVQ, the motion vector and the pixel-intensity interpolation filter are combined into a motion filter and the entire filter is vector quantized. A codebook design algorithm is proposed for designing unit gain and entropy constrained MFVQ codebooks. The algorithm is tested under two application configurations, MFVQ with static codebook and MFVQ with forward-adaptive codebook, and is shown to furnish up to a dB of PSNR gain.