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Long-term memory prediction extends the spatial displacement vector utilized in hybrid video coding by a variable time delay, permitting the use of more than one reference frame for motion compensation. This extension leads to improved rate-distortion performance. However, motion compensation in combination with transmission errors leads to temporal error propagation that occurs when the reference frames at the coder and decoder differ. In this paper, we present a framework that incorporates an estimated error into rate-constrained motion estimation and mode decision. Experimental results with a Rayleigh fading channel show that long-term memory prediction significantly outperforms the single-frame prediction H.263-based anchor. When a feedback channel is available, the decoder can inform the encoder about successful or unsuccessful transmission events by sending positive (ACK) or negative (NACK) acknowledgments. This information is utilized for updating the error estimates at the encoder. Similar concepts, such as the ACK and NACK mode known from the H.263 standard, are unified into a general framework providing superior transmission performance.