This book introduces a novel transcoding algorithm for real time video applications, designed to overcome inter-operability problems between MPEG-2 to H.264/AVC. The new algorithm achieves 92.8% reduction in the transcoding run time at a price of an acceptable Peak Signal-to-Noise Ratio (PSNR) degradation, enabling readers to use it for real time video applications. The algorithm described is evaluated through simulation and experimental results. In addition, the authors present a hardware implementation of the new algorithm using Field Programmable Gate Array (FPGA) and Application-specific standard products (ASIC).