We present a selective overview of time-frequency analysis and some of its key problems. In particular we motivate the introduction of wavelet and wavelet packet analysis. Different types of decompositions of an idealized time-frequency plane provide the basis for understanding the performance of the numerical algorithms and their corresponding interpretations within the continuous models. As examples we show how to control the frequency spreading of wavelet packets at high frequencies using nonstationary filtering and study some properties of periodic wavelet packets. Furthermore we derive a formula to compute the time localization of a wavelet packet from its indexes which is exact for linear phase filters, and show how this estimate deteriorates with deviation from linear phase.