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This paper discusses distributed coding of two correlated video signals. The video signals are captured from a dynamic scene where each signal is temporally decorrelated by a motion-compensated Haar wavelet. The two cameras operate independently, however, the central decoder is able to exploit the coded information from all cameras to achieve the best reconstruction of the correlated video signals. The coding system utilizes nested lattice codes for the transform coefficients and exploits side information at the decoder. The efficiency of the decoder is improved by disparity compensation of one video signal. When compared to decoding without side information, decoding of the quantized transform coefficients with side information reduces the bit-rate of our test sequence by up to 5%. Further, we observe bit-rate savings of up to 8% with disparity compensation at the decoder and decoding of transform coefficients with side information.