Wireless video multicast enables delivery of popular events to many mobile users in a bandwidth efficient manner. However, providing good and stable video quality to a large number of users with varying channel conditions remains elusive. A promising solution to this problem is the use of packet level Forward Error Correction (FEC) mechanisms. However, the adjustment of the FEC rate is not a trivial issue due to the dynamic wireless environment. This decision becomes more complicated if we consider the multi-rate capability of the existing wireless LAN technology that adjusts the transmission rates based on the channel conditions and the coverage range. In this paper, we explore the dynamics of Forward Error Correction (FEC) schemes in multi-rate wireless local area networks. We study the fundamental behavior of a 802.11g network which already has embedded error correction in physical layer, under unicast and broadcast modes in a real outdoor environment. We then explore the effectiveness of packet level FEC over wireless networks with multi-rate capability. In order to evaluate the system quantitatively, we implemented a prototype using open source drivers, and ran experiments. Based on the experimental results, we provide guidelines on how to efficiently use FEC for wireless multicast services in order to improve the overall system performance. We argue that even there is a physical layer error correction, using a higher transmission rate together with stronger FEC is more efficient than using a lower transmission rate with weaker FEC for multicast.