We investigate new and efficient methods for coding the motion compensated residues in a hybrid video coder framework, that are able to improve upon the performance of the very successful DCT based adaptive block size integer transform used in H.264/AVC. We use an algorithm based on adaptive block size recurrent pattern matching, that encodes each block of motion compensated predicted data using a scaled pattern stored into an adaptive dictionary. We refer to this algorithm as Multidimensional Multiscale Parser, or MMP. A video encoding method is presented, that uses MMP instead of the integer transform in an H.264/AVC encoder framework. Experimental results show that MMP is capable of achieving consistent gains on the final average PSNR, when the new encoder is compared with H.264/AVC's high profile.