software to batch rectify nadir imagery

Maybe you all can give me some ideas on this.

I have a ethernet (gigE) camera pointed nadir in an aircraft.  The camera takes pictures every 2 seconds.  When the camera takes the pictures, its sends a trigger to my IMU that records a log file which has Pitch, roll, heading, time, height above ellipsoid and GPS location (I can add other fields if needed).

So after a flight I have a set of JPG pictures, and a log file.

What is the best way to go about creating a KML file to overlay each picture in google earth.  I am not looking to create a DEM, just create a kml file that shows orthorectified images.  (they do not all have to be displayed at once, that would crash GE for sure)

Also, am I going about this the wrong way?  Should I be embedding the GPS and IMU info in the exif header of the images on the fly?  

to sum it up, I have a good ethernet camera, and very precise IMU with GPS that logs event triggers.  I need some batch software to create a kml of images.  (a lot of images, think 6 hour flight)  How would you all go about using this hardware to make orthorectified images?

Thanks for any help

(open source preferred) 

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