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A cross-layer design for optimizing 3-D wavelet scalable video transmission over the IEEE 802.11e networks is proposed. A thorough study on the behavior of the IEEE 802.11e protocol is conducted. Based on our findings, all timescales rate control is developed featuring a unique property of soft capacity support for multimedia delivery. The design consists of a macro timescale and a micro timescale rate control schemes residing at the application layer and the network sublayer respectively. The macro rate control uses bandwidth estimation to achieve optimal bit allocation with minimum distortion. The micro rate control employs an adaptive mapping of packets from video classifications to appropriate network priorities which preemptively drops less important video packets to maximize the transmission protection to the important video packets. The performance is investigated by simulations highlighting advantages of our cross-layer design.