Bursty packet losses can be quite harmful to video applications transmitted over the Internet since burst losses generally produce a larger video distortion than an equal number of isolated losses . This paper combines packet interleaving with motion-compensated (MC) fine granularity scalability (MC-FGS) video source coding and unequal loss protection (ULP) to combat the effects of bursty losses. The video source coder, ULP allocation and interleaver parameters are jointly optimized under an end-to-end delay constraint based on the network state. The simulation results demonstrate that the improvement in mean PSNR achieved by this proposed scheme increases as the average burst length of the network losses increases or the delay constraint is relaxed. For a short media clip, this system can achieve 1.9 dB improvement over a comparison transport system without interleaving.