An adaptive digital image processor precedes an MPEG2 encoder. The processor receives a high definition video signal intended for broadcast or storage, and adaptively low-pass filters the signal. The signal is subjected to low-pass two-dimensional filtering to eliminate encoding artifacts and related noise. The video signal is then horizontally down-sampled to create a lower resolution hybrid signal. A receiver decodes and decompresses the hybrid signal. The hybrid signal is upsampled to its original resolution using existing hardware and software with a software modification.