In this work, a robust data embedding scheme, which uses a source and channel coding framework for data hiding is implemented. The data to be embedded, referred to as the signature data, comprises of two different data types, text messages and images as the signature data. The first data type used was the text message, where the text message is converted into bits and these bits are coded using Reed- Solomon codes, and the resulting code is hidden into the wavelet transformed coefficients of the host image. For hiding images as signature data, an image is used as large as 128 X 128 to be hidden into a host image of size 256 X 256. The perturbations are controlled by a maximum allowable visible distortion that can be introduced in the host using a model of the human visual perception. This method could be used for both digital watermarking related applications as well as for data hiding purposes.