A spatial-resolution reduction based framework for incorporation of a Wyner-Ziv frame coding mode in existing video codecs is presented, to enable a mode of operation with low encoding complexity. The core Wyner-Ziv frame coder works on the Laplacian residual of a lower-resolution frame encoded by a regular codec at reduced resolution. The quantized transform coefficients of the residual frame are mapped to cosets to reduce the bit-rate. A detailed rate-distortion analysis and procedure for obtaining the optimal parameters based on a realistic statistical model for the transform coefficients and the side information is also presented. The decoder iteratively conducts motion-based side-information generation and coset decoding, to gradually refine the estimate of the frame. Preliminary results are presented for application to the H.263+ video codec. 11 Pages