In this paper, we propose a new stereoscopic video coding approach for heterogeneous consumer devices by exploiting the concept of spatio-temporal scalability. The proposed method uses MPEG-2 standard for coding the left or main sequence and an enhanced compatible coding scheme for predicting the P- and B-type of frames of the right or auxiliary sequence. The enhanced compatible coding scheme predicts matching block by interpolating both two forward and backward motion predicted macroblocks and disparity predicted macroblock. To provide flexible stereo video service, we define both a temporally scalable layer and a spatially scalable layer for each eye-view. The experimental results show the efficiency of proposed coding scheme by comparison with already known methods and the advantages of disparity estimation in terms of scalability overhead. According to the experimental results, we expect the proposed functionalities will play a key role in establishing highly flexible stereo video service for ubiquitous computing environment where devices and network connections are heterogeneous.