Design of H.264/AVC motion compensation (MC) is very challenging through the high memory bandwidth and low hardware utilization caused by the new functionalities of variable block size and 6-tap interpolation filter. In this paper, the vertically integrated double Z (VIDZ) schedule, and interpolation window reuse (IWR) and interpolation window classification (IWC) bandwidth reduction schemes are proposed to keep the MC highly utilized and save 60-80% memory bandwidth. The hardware of proposed MC is implemented at 120MHz with 47K logic gates and can support 2048 times 1024 30fps H.264/AVC HDTV decoder with less than 200MB/s memory bandwidth