In this paper, a video conference system we developed recently is presented. In this system the video codec is compatible with CCITT H.261, the audio codec is compatible with G.711 and G.722, the channel interface circuit is designed according to CCITT H.221. In this paper emphasis is given to the video codec, which is both flexible and robust. The video codec is based on LSI LOGIC Corporation's L64700 series video compression chipset. The main function blocks of H.261, such as DCT, motion estimation, VLC, VLD, are performed by this chipset, but the chipset is a nude chipset, no peripheral function, such as memory interface, is integrated into it, this results in great difficulty to implement the system. To implement the frame buffer controller, a DSP-TMS 320c25 and a group of GALs is used, SRAM is used as a current and previous frame buffer, the DSP is not only the controller of the frame buffer, it's also the controller of the whole video codec. Because of the use of the DSP, the architecture of the video codec is very flexible, many system parameters can be reconfigured for different applications. The architecture of the whole video codec is a streamline structure. In H.261, BCH(511,493) coding is recommended to work against random errors in transmission, but if burst error occurs, it causes serious result. To solve this problem, an interleaving method is used, that means the BCH code is interleaved before it's transmitted, in the receiver it is interleaved again and the bit stream is in the original order, but the error bits are distributed into several BCH words, and the BCH decoder is able to correct it. Considering that extreme conditions may occur, a function block is implemented which is somewhat like a watchdog, it assures that the receiver can recover from errors no matter what serious error occurs in transmission. In developing the video conference system, a new synchronization problem must be solved, the monitor on the receiver can't be easily synchronized with the camera on another side, a new method is described in detail which can solve this problem successfully.