A layered presentation system (LAPE) includes a server that performs compressed-domain image processing on image data received from multiple clients including a master client and other clients to generate a composite image that incorporates imagery from the other clients with a master image from the master client for viewing on a shared display. The system's clients can add imagery in the form of questions, comments, and graphics to a currently displayed image. The added imagery is processed along with the master image to generate the composite image that then appears on the shared display and perhaps also on each client's individual display. The processing includes scaling the master image/added imagery, as required, and blending and/or overlaying the added imagery onto the master image so as to augment but not obscure it. A network protocol is included for sending image data in the compressed domain back and forth between the server and each of the clients.