A system for performing multi-level video processing within a vehicle includes a pre-processing module for determining an encoding mode and enabling one or more levels of encoding based on the encoding mode. The pre-processing module further receives a video stream from a camera attached to the vehicle via a vehicular communication network and encodes the video stream based on the encoding mode to produce a packet stream output. The system further includes a video decoder for receiving the packet stream output and decoding the packet stream output in accordance with the encoding mode to produce a decoded video output.