Overcomplete signal decomposition using matching pursuits has been shown to be an eecient technique for coding motion residual images in a hybrid video coder. Unlike orthogonal decomposition, matching pursuit uses an in-the-loop modulus quantizer which must be speciied before coding begins. This complicates the quantizer design, since the optimal quantizer depends on the statistics of the matching pursuit coeecients which in turn depend on the in-loop quantizer actually used. In this paper, we address the modulus quantizer design issue, speciically developing frame-adaptive quantization schemes for the matching pursuit video coder. Adaptive dead-zone subtraction is shown to reduce the information content of the modulus source, and a uniform threshhold quantizer is shown to be optimal for the resulting source. Practical 2-pass and 1-pass algorithms are developed to jointly determine the quantizer parameters and the number of coded basis functions in order to minimize coding distortion for a given rate. The compromise 1-pass scheme performs nearly as well as the full 2-pass algorithm, but with the same complexity as a xed quantizer design. The adaptive schemes are shown to outperform the xed quantizer used in earlier works, especially at high bit rates where the gain is as high as 1.7 dB.