One subject of this invention is the development of a novel region of interest (ROI) method, or Frame Segmentation Method that can be provided within a video stream, in real-time, or more precisely within a few milliseconds of video frame duration of 30 msec, or even in the sub-millisecond range. This video frame segmentation is the basis of Pre-ATR-based Ultra-Real-Time (PATURT) video compression. Still other subjects of this invention are morphing compression, and watermarking, also based on the PATURT. The applications of the PATURT innovation include ROI-based real-time video recording that has special applications for aircraft pilot/cockpit video recording in “black-box” devices, recording aircraft accidents, or catastrophes. Such black-box devices usually need to pass high impact (3400 g), high temperature (1100° C., in 1 h), and other harsh environmental tests. In this invention, they also have the capability of reporting the last cockpit events up to 0.5 seconds before an accident, including all cockpit sensor readings, as well as pilots' behavior, the latter with fully scrambled and non-recoverable facial information. Further applications include video surveillance. The latter can be also applied to missile defense (recognizing real target or real missile, from false targets (decoys)), or to other Ultra-Real-Time (URT) civilian and military scenarios.