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Streaming video using P2P network has gained its popularity as it utilizes the upload bandwidth of the participating peers and alleviates the bandwidth consumption of the streaming server. However, delivering video to a variety of decoding devices over heterogeneous network is a new challenge. In this paper, we propose a system that adopts SVC (scalable video coding) to deal with the heterogeneous environment (including network, display and computational capabilities, etc.), and using network coding (NC) to eliminate the hierarchical relationship of SVC packets. At the source server, video is coded by NC according to the priority of layers; at the intermediate nodes, NC is used by mixing the transmitted packets, then, a packetization scheme tailored to NC delivery is discussed in detail. The proposed scheme can make full use of available bandwidth and reduce the delay, and it enables efficiently video delivery to heterogeneous receivers. Simulation results show that the proposed scheme yields a superior video quality and great bandwidth saving compared to the ordinary NC.