Block-based motion estimation technique is being widely used in video compression applications, for the removal of video temporal redundancy. In this paper we have implemented the six-level nested Do-loop Full- Search Block-Matching motion estimation algorithm proposed by H.Yeo and Y.H.Hu by breaking the respective frames into macroblocks. We have used Matlab for the simulation of the algorithm and the results obtained is being presented in this paper. We have first implemented the algorithm using 25 movie frames without breaking them into macroblocks, in the next phase we have implemented the same after breaking the frames into the respective macroblocks. We have also proposed a multi processing based architecture for the hardware implementation of the simulated algorithm.