FEC (Forward Error Correction) decoder with dynamic parameters. A novel means by which FEC parameters may be encoded into, and subsequently extracted from, a signal stream to allow for adaptive changing of any 1 or more operational parameters that govern communications across a communication channel. FEC parameters are encoded directly into a data frame such that the data frame is treated identical to all other data frames within the signal stream. When the data frame actually includes FEC parameters, it is characterized as a CP (Control Packet) type. For example, when decoding an MPEG stream, an MPEG block that includes FEC parameters, that MPEG block is characterized as a CP MPEG block. The means by which FEC parameters are encoded and extracted from the signal stream allows for much easier adaptive modification of the manner by which signal are encoded, modulated, and processed within a communication system.