A video decompression system includes block error concealment means for generating substitute data for lost blocks of pixel data. An interpolator generates both spatially and temporally interpolated or predicted blocks of data for concealing a lost block. Pixel data in the respective blocks of spatially and interpolated data are transformed to coefficients representing frequency spectra. A substitute block of coefficients is assembled from coefficients from both the transformed blocks, according to a predetermined criteria. The substitute block is transformed back to the spatial domain for substitution of lost pixel values.