Video coding plays an important role in video transmission and storage applications. Today's increasing order of multimedia applications led to a lot of research works in video coding in such a way that high compression ratio is achieved with the available bandwidth. Wavelet based image compression has witnessed great success in the past decade. Wavelet transform based motion compensated video codec performs better compression in order to meet the rate and distortion constraint in video transmission than the block based techniques. However, it is well known that the 2D DWT does not represent directional features of images efficiently. Lots of efforts have been put into multiscale directional representation. In this paper, video coding using directional transform DDWT is considered and its expansive nature is reduced by noise shaping algorithm. High compression ratio is achieved through the-selection of optimal coefficients of DDWT using Multi Objective Particle Swarm Optimization (MOPSO) method. In this video coding technique, the objective functions of Entropy, Computation Time and Mean Square Error are considered for optimization with the constraints of bits per pixel and frame rate. The selected optimum coefficients are encoded using EZW method. The performance of the proposed method is compared with the standard 3D SPIHT coding.