In conventional motion-compensated three-dimensional subband/wavelet coding, where the motion compensation is unidirectional, incorrect classification of connected and unconnected pixels caused by incorrect motion vectors (MVs) has resulted in some coding inefficiency and visual artifacts in the embedded low-frame-rate video. In this paper, we introduce bidirectional motion compensated temporal filtering with unconnected pixel detection and I blocks. We also incorporate a recently suggested lifting implementation of the subband/wavelet filter for improved MV accuracy in an MC-EZBC coder. Simulation results compare PSNR performance of this new version of MC-EZBC versus H.26L under the constraint of equal groups of pictures size, and show a general parity with this state-of-the-art nonscalable coder on several test clips.