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Entanglement purification protocols (EPPs) and quantum error-correcting codes (QECCs) provide two ways of protecting quantum states from interaction with the environment. In an EPP, perfectly entangled pure states are extracted, with some yield D, from a mixed state M shared by two parties; with a QECC, an arbitrary quantum state |\ensuremath{\xi}〉 can be transmitted at some rate Q through a noisy channel \ensuremath{\chi} without degradation. We prove that an EPP involving one-way classical communication and acting on mixed state M^(\ensuremath{\chi}) (obtained by sharing halves of Einstein-Podolsky-Rosen pairs through a channel \ensuremath{\chi}) yields a QECC on \ensuremath{\chi} with rate Q=D, and vice versa. We compare the amount of entanglement E(M) required to prepare a mixed state M by local actions with the amounts ${\mathit{D}}_{1}$(M) and ${\mathit{D}}_{2}$(M) that can be locally distilled from it by EPPs using one- and two-way classical communication, respectively, and give an exact expression for E(M) when M is Bell diagonal. While EPPs require classical communication, QECCs do not, and we prove Q is not increased by adding one-way classical communication. However, both D and Q can be increased by adding two-way communication. We show that certain noisy quantum channels, for example a 50% depolarizing channel, can be used for reliable transmission of quantum states if two-way communication is available, but cannot be used if only one-way communication is available. We exhibit a family of codes based on universal hashing able to achieve an asymptotic Q (or D) of 1-S for simple noise models, where S is the error entropy. We also obtain a specific, simple 5-bit single-error-correcting quantum block code. We prove that iff a QECC results in high fidelity for the case of no error then the QECC can be recast into a form where the encoder is the matrix inverse of the decoder. \textcopyright{} 1996 The American Physical Society.