1. A method for encoding a video signal having at least one frame with a plurality of blocks having pixels, comprising: determining motion vectors for a first block in the at least one frame and at least some of the blocks that are neighbors to the first block; identifying neighboring blocks having motion vectors that are similar to the motion vector of the first block; assigning the first block and the identified neighboring blocks to a segment using a processor; applying a segment parameter to at least one block in the segment; encoding the at least one block using the segment parameter; and subsequent to encoding the at least one block using the segment parameter: determining a segmentation error associated with applying the segment parameter to a plurality of subsequent frame blocks in a subsequent frame located at corresponding positions as the at least one block in the segment, if the determined segmentation error exceeds a predetermined threshold, determining a new segment for the subsequent frame, and if the determined segmentation error does not exceed the predetermined threshold, applying the segment parameter to at least one of the plurality of subsequent frame blocks in the subsequent frame.