A TFT-LCD system suitable for multi-media applications is described. It can produce CA and AV images simulateously on a SHARP's standard CA panel that has VGA display format. A 6-bit digital source driver that can generate 64 grey levels for each color is incorporated into this panel. The system utilizes a pre-controller that compresses normal 8-bit video data into 6-bit data using the Inter-Frame Modulation Method. This method is also described.
