A method and system for improved motion compensation between a previous frame of video information and a new frame. Each block of pixels in a block-based compression scheme uses four vectors, three from proximate blocks, to determine motion-induced changes to its pixels. The vectors are interpolated for each pixel based on the location of the pixel in the block with respect to the vectors. The address of each pixel in the frame block of the previous frame is altered based on the resultant vector determined therefor, whereby a color value for the new pixel is obtained from the altered address. Sharp contrasts at the edges between blocks are eliminated due to the gradual blending obtained by using vectors of the adjacent blocks to determine a pixel's color.