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The emergence of 3G and 4G wireless networks brings with it the possibility of streaming high quality video content on-demand to mobile users. Wireless video applications require appropriate scheduling techniques that make use of the specific characteristics of video content, as well as the well known gains from multiuser diversity. While fast and frequent channel feedback is available in the new generation of wireless networks, the channel estimates cannot be perfect, and channel losses should be taken into account in the packet scheduling and resource allocation. The proposed scheme is formulated as a joint optimization over the resource allocation and channel loss protection, in order to minimize the distortion of the received video sequences. The distortion is a function of the packets deliberately dropped at the transmission queue due to congestion, as well as of random channel losses. The scheme makes use of a packet prioritization strategy that orders video packets based on their contribution to reducing the expected distortion of the received video sequence. Simulation results show that the proposed technique significantly outperforms content-independent packet scheduling schemes.