1. A system for processing a stereoscopic image stream having a merged frame format, comprising: a spatial interpolation module configured to spatially interpolate each merged frame of said stereoscopic image stream into reconstructed frame data; a buffer configured to store said reconstructed frame data; a memory controller configured to read out said reconstructed frame data from said buffer; a temporal interpolation module configured to generate an output stream of frames using temporal interpolation of said reconstructed frame data, wherein said temporal interpolation is in accordance with a selected one of a plurality of stereoscopic 3D display modes; and an output configured to output said output stream of frames.