We study the problem of how to stream layered video (live and stored) over a lossy packet network in order to optimize the video quality that is rendered at the receiver. We present a unified framework that combines scheduling, FEC error protection, and decoder error concealment. In the context of the unified framework, we study both the case of a channel with perfect state information and the case of a channel with imperfect state information (delayed or lost feedback). We adapt the theory of infinite-horizon, average-reward Markov decision processes (MDPs) with average-cost constraints to the problem. Based on simulations with MPEG-4 FGS video, we show that (1) optimizing together scheduling, FEC error correction and error concealment improves performance significantly and (2) policies with static error protection give near-optimal performance. We also find that degradations in quality for a channel with imperfect state information are small; thus our MDP approach is suitable for networks with long end-to-end delays.