A video layer effects processing system which receives normal video and special effects information on separate layers has been presented. The system selectively mixes various video layers to transmit a composite video signal for a video display such as a television, or a virtual reality system. Special effects include spotlights, zooming, etc. Additional special effects such as shaping of objects and ghost effects are created by masking and superimposing selected video layers. The selective mixing, for example, to enable or disable, strengthen or weaken, or otherwise arrange special effects, can be directed from a remote source or locally by a user through real-time control or prior setup. The video layer effects processing system can also be incorporated into a set-top-box or a local consumer box.