1. A method for compressing a first image represented by a first matrix of pixels into an encoded data sequence for transmission and/or storage, where each of said pixels is represented by an input digital signal data point, and for decompressing the encoded data sequence into a plurality of output digital signal data points corresponding to a second matrix of pixels representing a second image, wherein said input digital signal data points at or near boundary of the image comprise a plurality of boundary subsequences and said input digital signal data points not at or near the boundary of the image comprise a plurality of non-boundary subsequences, comprising the steps of: (a) identifying each boundary subsequence and each non-boundary subsequence of a first image represented by a first matrix of pixels, each of said pixels represented by an input digital signal data point, said input digital signal data points forming said first image having a first combined data length; (b) filtering each said boundary subsequence using a low pass boundary forward quasi-perfect reconstruction filter and a high pass boundary forward quasi-perfect reconstruction filter to produce a plurality of filtered boundary subsequences including interleaved low and high frequency values at one or more octaves; (c) filtering each said non-boundary subsequence using a low pass non-boundary forward quasi-perfect reconstruction filter and a high pass non-boundary forward quasi-perfect reconstruction filter to produce a plurality of filtered nonboundary subsequences including interleaved low and high frequency values at one or more octaves, said interleaved low and high frequency values of said filtered boundary subsequences and said filtered non-boundary subsequences forming a filtered digital signal array having a plurality of filtered digital signal data points; (d) selecting interleaved low and high frequency values at one or more octaves from said filtered digital signal array via a plurality of counters and predefined sub-indices; (e) encoding said selected interleaved low and high frequency values at one or more octaves to produce encoded data values; and (f) repeating steps (d) and (e) for all the interleaved low and high values at one or more octaves in said filtered digital signal array to accumulate the encoded data values to produce an encoded data sequence having a second combined data length where said second combined data length is smaller than said first combined data length.