A method and system for coding a video sequence based on motion compensated prediction, wherein an interpolation filter is used to generate predicted pixel values for picture blocks in the video sequence. The interpolation filter for use in conjunction with a multi-picture type is shorter or having fewer coefficients than the interpolation filter for use in conjunction with a single-picture type. As such, the complexity of the interpolation filter for the multi-picture type can be reduced. Furthermore, the interpolation filter may be changed based on the characteristics of the block, the size and/or the shape of the block.