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Wireless Capsule Endoscopy (WCE) is a popular diagnostic technology that enables gastroenterologists to view the human digestive tract and more particularly, the small bowel, searching for various abnormalities like blood-based abnormalities, ulcers and polyps. This technology captures videos that consist of approximately 50,000 frames making its examination a very tedious task. For power consumption reasons the rate at which the frames are taken is extremely low (3 frames / second). This has a negative effect on the smoothness of the captured video and the consistency of the observed objects. This paper proposes a sophisticated video interpolation methodology for creating smooth and visually pleasing intermediate images from consecutive frames, while preserving the structure of the observed objects. It utilizes techniques and concepts from various fields such as optical flow and elasticity. Illustrative results of the methodology are also given in this paper.