In this dissertation, a fully scalable video coding system is proposed. This system achieves full temporal, resolution, and fidelity scalability by combining mesh-based motion-compensated temporal filtering, multihypothesis motion compensation, and an embedded 3D wavelet-coefficient coder. The first major contribution of this work is the introduction of the redundant-wavelet multihypothesis paradigm into motion-compensated temporal filtering, which is achieved by deploying temporal filtering in the domain of a spatially redundant wavelet transform. A regular triangle mesh is used to track motion between frames, and an affine transform between mesh triangles implements motion compensation within a lifting-based temporal transform. Experimental results reveal that the incorporation of redundant-wavelet multihypothesis into mesh-based motion-compensated temporal filtering significantly improves the rate-distortion performance of the scalable coder. The second major contribution is the introduction of a sliding-window implementation of motion-compensated temporal filtering such that video sequences of arbitrarily length may be temporally filtered using a finite-length frame buffer without suffering from severe degradation at buffer boundaries. Finally, as a third major contribution, a novel 3D coder is designed for the coding of the 3D volume of coefficients resulting from the redundant-wavelet based temporal filtering. This coder employs an explicit estimate of the probability of coefficient significance to drive a nonadaptive arithmetic coder, resulting in a simple software implementation. Additionally, the coder offers the possibility of a high degree of vectorization particularly well suited to the data-parallel capabilities of modern general-purpose processors or customized hardware. Results show that the proposed coder yields nearly the same rate-distortion performance as a more complicated coefficient coder considered to be state of the art.