In this paper, we present an effective overlay real-time video multicast system over the Internet. The proposed system effectively integrates overlay multicast technology and video compression technology. Overlay multicast tree and target bit rate are determined to satisfy the given average delay constraint, and H.263+ rate control is implemented to enhance the human visual perceptual quality over the multicast tree. Finally, experimental results are provided to show the performance of the proposed overlay video multicast system over the Internet.