1. An adaptive filter interpolation process for interpolating missing color values at a given pixel in a mosaiced color image, comprising: using a computer to perform the steps of: selecting a current pixel having a current color and location from a mosaiced color image; for the current pixel location and color, computing gradients in a horizontal and a vertical direction; for the current pixel and location, computing an activity metric in a horizontal direction and an activity metric in a vertical direction that takes into account candidate output interpolated pixels, wherein the process action of computing activity metrics in the horizontal and vertical directions that takes into account candidate output interpolated pixels, further comprises: computing horizontal and vertical estimates for the missing color values at the current pixel; and measuring the absolute difference between the computed horizontal and vertical estimates of the missing color values at the current pixel and the colors of the immediate neighbors of the current pixel to determine the activity metrics in the horizontal and vertical directions; using the computed gradients in the horizontal and vertical directions, and the activity metrics in the horizontal and vertical directions, to choose the best interpolation filters from a small set of predetermined interpolation filters; and computing an interpolation of the missing color values at the current pixel with the selected interpolation filters.