This paper presents a rate-distortion based selective decoding for pixel-domain distributed video compression (DVC) system. In the proposed system, the Wyner-Ziv frames are divided into several sub-images. Each of these sub-images is encoded and decoded independently. At the decoder, the rate-distortion ratio is estimated for each bitplane of the sub-images. Only the bitplanes with high rate-distortion ratios are Turbo decoded. A minimum-distance symbol reconstruction is proposed to estimate the rest of the bitplanes by using the side information and Turbo-decoded bitplanes. More accurate placement of the parity bits results in an improved system performance, especially for video sequences with a relatively large static background. Coding results and comparison with existing DVC schemes and with H.264 interframe coding are presented to illustrate the performance of the proposed system.