1. A video processing system for receiving a digital bitstream and for processing the digital bitstream, the system comprising: a video processor for processing the digital bitstream to generate a plurality of pictures, each picture being associated with a first flag for providing an indication on whether or not the picture is to be implemented with a reduced memory mode and a second flag for providing an indication on whether or not the picture is to be reduced in size to picture data prior to being stored, the indication of the second flag being adaptively determined after a picture type of the associated picture has been first determined by the video processor; a down-converter for converting one or more pictures to picture data; a memory comprising a plurality of buffers, the picture being stored in a buffer as the picture data when the indication of the associated first flag is indicating switched-on and the indication of the associated second flag is indicating armed, and the picture being stored in two or more buffers without size reduction when the indication of the associated first flag is indicating switched-off or the indication of the associated second flag is indicating unarmed; and an up-converter for recovering the pictures from the picture data and for providing the pictures to the video processor for use during processing of the digital bitstream.