Video coding system providing separate coding chains for dynamically selected small-size or full-size playback

Embodiments of the present invention provide a coding system that codes data according to a pair of coding chains. A first coding chain generates coded video data that can be decoded by itself to represent a source video sequence of a small size, such as a size sufficient to support the real time playback and display features of a video editing application. The second coding chain generates coded video data representing supplementary data, which when decoded in conjunction with the coded video data of the first coding chain, yields the source video sequence for full-size display. The output of the first coding chain may be stored in memory in a file structure that can be accessed independently of the second chain's output and, therefore, it facilitates real time decoding and playback.