> What sort of algorithms ?
Basically a transform, i.e. wavelets change your data into a different
representation of the same size. The trick is to make the transformed
data more compressible by standard means - runlength, Huffman, etc....
Can be lossless or lossy.
Can be used in similar applications to DCT or FFT.
Can be used for motion / edge detection in image processing.
> are there any docs
Sure, try these:
http://www.wavelet.org/wavelet
http://www.public.iastate.edu/~rpolikar/WAVELETS/WTtutorial.html
> can i use it for real time encoding software ...
Perhaps. They do tend to be quite intensive since the transform uses MAC
(multiply and accumulate) operations.
Jamie