While many studies have concentrated on providing theoretical analysis for the relay assisted compress-and-forward systems little effort has yet been made to the construction and evaluation of a practical system. In this paper a practical CF system incorporating an error-resilient multilevel Slepian-Wolf decoder is introduced and a novel iterative processing structure which allows information exchanging between the Slepian-Wolf decoder and the forward error correction decoder of the main source message is proposed. In addition, a new quantization scheme is incorporated as well to avoid the complexity of the reconstruction of the relay signal at the final decoder of the destination. The results demonstrate that the iterative structure not only reduces the decoding loss of the Slepian-Wolf decoder, it also improves the decoding performance of the main message from the source.