This paper presents different issues of the real-time compression algorithms without compromising the video quality in the distributed environment. The theme of this research is to manage the critical processing stages (speed, information lost, redundancy, distortion) having better encoded ratio, without the fluctuation of quantization scale by using IP configuration. In this paper, different techniques such as distortion measure with searching method cover the block phenomenon with motion estimation process while passing technique and floating measurement is configured by discrete cosine transform (DCT) to reduce computational complexity which is implemented in this video codec. While delay of bits in encoded buffer side especially in real-time state is being controlled to produce the video with high quality and maintenance a low buffering delay. Our results show the performance accuracy gain with better achievement in all the above processes in an encouraging mode.