Image and video quality in Long Range Observation Systems (LOROS) suffer from atmospheric turbulence that causes small neighbourhoods in image frames to chaotically move in different directions and substantially hampers visual analysis of such image and video sequences. The paper presents a real-time algorithm for perfecting turbulence degraded videos by means of stabilization and resolution enhancement. The latter is achieved by exploiting the turbulent motion. The algorithm involves generation of a "reference" frame and estimation, for each incoming video frame, of a local image displacement map with respect to the reference frame; segmentation of the displacement map into two classes: stationary and moving objects and resolution enhancement of stationary objects, while preserving real motion. Experiments with synthetic and real-life sequences have shown that the enhanced videos, generated in real time, exhibit substantially better resolution and complete stabilization for stationary objects while retaining real motion.