In order to improve the quality of side information（SI） generated by the motion-compensated temporal interpolation（MCTI） during distributed video coding（DVC）,a scheme to generate SI at the block level is proposed.In this scheme,a mode decision is made at the encoder side,and the macro-blocks in the WZ frame are classified into two modes,namely WZ mode and intra/WZ mode.For the blocks in WZ mode,SI is generated via the MCTI,while for those in intra/WZ mode,high-quality SI is generated by means of motion-compensated quality enhancement（MCQE） after transmitting low-quality intra blocks from the encoder to the decoder.Experimental results demonstrate that the proposed scheme greatly improves the SI quality and achieves an improvement of RD performance up to 2.10dB,especially for strong-motion video sequences and longer length of groups of pictures.