In this paper, we propose several improvements to the 3D-tarp coder for the lossy compression of hyperspectral imagery. Specific ameliorations include use of principal component analysis instead of a wavelet transform for spectral decorrelation, use of the quincunx wavelet transform instead of the traditional dyadic decomposition in the spatial direction, and spectral partitioning with skipping of insignificant zeros. Experimental results reveal that the enhanced coder achieves improved rate-distortion performance.