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For video transmission over wireless or highly congested networks, video transcoding is typically used to reduce the rate and change the format of the originally encoded video source to match network conditions and terminal capabilities. Error resilient video transcoding can insert error resilient tools in the compressed video to enhance error resilience of the video over wireless channels by increasing bit rate. This paper proposed a novel error resilient video transcoding and streaming transmission scheme specially designed for Mpeg2 to H.264 transcoded video to portable devices in wireless channel. Based on the rate-distortion models developed in this paper, an optimal transcoding marcoblock mode selection and bit allocation scheme is proposed. In order to improve the video quality in the presence of transmission error, this paper also investigated how to allocate redundant pictures more efficiently according to the content characteristics of the primary pictures. The experiment results demonstrated that the proposed transcoding scheme can enhance speed and improve the decode image quality, get better error resilience.