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Distributed video coding (DVC) is considered as one promising video coding scheme for Wireless Video Sensor Network (WVSN) due to its high compression efficiency and error resilience functionalities, as well as the low encoding complexity. This paper presents an improved DVC scheme based on the source classification in wavelet domain. In this scheme, the new side information (SI) refinement method is adopted. Initial SI is achieved by motion-compensated weighted interpolation. Then we use a motion compensated refinement of the partially decoded Wyner-Ziv (WZ) frame to update SI. A better reconstruction of the WZ frame is eventually obtained with the refined SI. The results indicate that the proposed scheme can improve the whole performance of DVC codec compared to state-of-the-art DVC and be deployed over a real visual sensor platform.