This paper consists of two major parts. First, we present the outline of a simple approach to very-low bandwidth video-conferencing system relying on an example-based hierarchical image compression scheme. In particular, we discuss the use of example images as a model, the number of required examples, faces as a class of semi-rigid objects, a hierarchical model based on decomposition into different time-scales, and the decomposition of face images into patches of interest. In the second part, we present several algorithms for image processing and animation as well as experimental evaluations. Among the original contributions of this paper is an automatic algorithm for pose estimation and normalization. We also review and compare different algorithms for finding the nearest neighbors in a database for a new input as well as a generalized algorithm for blending patches of interest in order to synthesize new images. Finally, we outline the possible integration of several algorithms to illustrate a simple model-based video-conference system.