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We propose a novel cross layer solution for optimizing the performance of multiple users, which are concurrently transmitting their delay-sensitive video streams over the same shared contention-based wireless LAN. To improve the performance of their applications, they dynamically adapt their medium access control (MAC) strategies (i.e., retry limits). Higher retry limits will benefit the user, but they will also lead to an increased congestion for the other users. Hence, we explicitly consider how the cross layer strategy adopted by one video user will impact the strategies of the competing users. Specifically, we analytically model how the cross layer transmission strategies adopted by each wireless user impact their own incurred distortion and delay but also that of their competing wireless stations. We also propose a distributed, low-complexity, and highly scalable optimization algorithm which can maximize the utility of the delay-sensitive video application. We compare our scheme to existing retry limit-based solutions, and the simulation results show that the proposed solution can outperform these solutions and maximize the users' utilities in a highly congested multiuser wireless environment.