We investigate the effect of network errors on Embedded Zerotree Wavelet (EZW) encoded images and propose modifications to the EZW coder to increase error resilience in bursty packet loss conditions. A hybrid-encoding scheme that uses data interleaving to spread correlated information into independently processed groups and layered encoding to protect significant information within each group is presented. Simulation results for various packet loss percentages show the improved error resiliency of our scheme in random and bursty packet loss environments.