In my ongoing frustration to find a relatively cheap, IP based camera, I started looking at the Sparkfun 1300x1040 CMOS Camera. This is a $USD10 device, that connects via an 8-bit bus to ... something. In my case, that would be an ATNGW100.
I'll probably have to make up a board for it, to be able to handle the full bit rate, but the end result would be an IP camera for about $AUD160 - $AUD200 that handles a full mega-pixel, and does on-board motion detection. Assuming that I can get it efficient enough on the CPU. :)
It pretty much requires DMA to get the data into memory, but the camera does on-board JPEG compression so it should be too bad to ship the resulting data out over the network. And trivial jpeg decode just enough to do motion detect will hopefully be light enough on the CPU..
Anyway, something to play with. I ordered a couple so first step will be to see if I can actually get a picture off them.