This paper presents a framework of content-adaptive packetization scheme for streaming of 3D wavelet-based video content over lossy IP networks. The tradeoff between rate and distortion is controlled by jointly adapting scalable source coding rate and level of forward error correction (FEC) protection. A content dependent packetization mechanism with data-interleaving and Reed-Solomon protection for wavelet-based video codecs is proposed to provide unequal error protection. This paper also tries to answer an important question for scalable video streaming systems: given extra bandwidth, should one increase the level of channel protection for the most important packets, or transmit more scalable source data? Experimental results show that the proposed framework achieves good balance between quality of the received video and level of error protection under bandwidth-varying lossy IP networks.