A method and system for decoding and storing encoded control data delivered via the horizontal overscan area of a video signal. An interactive device such as a toy performs behavior defined by control data that can be encoded into a video signal. The toy is equipped with a decoder for extracting data from the horizontal overscan portion of the video signal, and a non-volatile memory that permits the control data to be stored for use after the video signal is no longer being received. The control data are delivered as a series of words that include genus codes and sequence codes. Genus codes identify the specific toy to which the word is directed, as more than one toy may receive the video signal. Error grading is used to minimize the effect of such signal deterioration, so the toy will replace previously received words if newer words are of higher quality.