This paper describes the methodology of fractal coding and some new fractal compression results for gray scale images. Image compression is discussed from a systems point of view. Current measures of compression performance are not necessarily correlated with image system performance measures. For example, at a fixed `quality' level, bits/pixel type measures are correlated to transmission times for sending a single image under ideal conditions. However, such measures don't necessarily indicate interaction effects between image coding and systems issues such as communication channel errors and communication channel loading. It is proposed that a systems performance measure of image coding techniques be developed.