The human vision offers a tremendous scope of data compression. Only about 2 degree in our about 140 degrees vision span has sharp vision. A fascinating body of research exists in vision and psychology geared towards the understanding of human visual perception system. The possibility of eye-tracking based perceptual compression has been anticipated for some time by many researchers. We have recently implemented one such system-a live eye-gaze integrated media streaming system. It integrates a streaming server, a real-time live media transcoder and a live magnetic head-tracker integrated high-speed eye tracker. A unique challenge of this real time perceptual streaming is how to handle the fast nature of human eye-gaze interaction with relatively complex MPEG-2 rate transcoding scheme, and the control loop delay associated with streaming in the network. We have designed a live eye gaze interaction based dynamic foveation windowing scheme to address the challenge.