If you find any good resources please post its a really interesting topic! For the more advanced users, would this be capable with a ATMega based system or would it be over its limits?
Possibly this could help haven't dove too deep into it yet but it might have some good info.
Yeah school is really bogging me down, but hey this stuff is part of "school"! I wanted to repost anyways and mention that I found that AVR's cannot video process to great extent. Not enough for streaming video that is, I should've known -durr-. I've checked out a bunch of sites and for your application there is a program called OpenCV that would probably do what you want it to do, just do a google search for it or youtube it and see.