I love my Canon mark 2 and gopro camera but it's absolutely terrible as a quadcopter camera.
The vibrations coupled with the CMOS sensor wrecks the whole image beyond repair.
Nearly all of today's cameras are made with CMOS sensors rather than the classical CCD sensor because CMOS offers better image quality and at lower power consumption... But there's a heavy cost that comes with this.
Rolling shutter.
Even with my stabilization software i can't really correct rolling shutter because the original image is distorted in the first place, thus yielding me warped stabilization that looks like an acid trip rather than beautiful aerial imagery.
CCD sensors do not have the rolling shutter because the image production process is completely different and the below video is a clear demonstration of the difference.
Comment by Austin Chapman on August 3, 2012 at 1:13pm 
I guess it depends on the camera. The Sony NEX cmos sensor has no visible rolling shutter that I have seen so far. And ironically the GoPro which is sold as a sports head-mount camera (quick movements guaranteed) has some of the worst rolling shutter problems I have ever seen.
What is the exact model name of your perfect camera?
Comment by Austin Chapman on August 3, 2012 at 1:58pm John, You're absolutely right about the gopro having some of the worst rolling shutter issues but the sony NEX still has rolling shutter, it simply does a better job of hiding it.
A few of today's CMOS cameras have rolling shutter prevention and it's clear that the NEX is one of them but as I said in the post there is no rolling shutter on cameras made with the CCD sensor. It doesn't exist at all, for further reading check this out- http://www.bhphotovideo.com/find/newsLetter/Comparing-Image-Sensors...

"...because CMOS offers better image quality and at lower power consumption."
Lower power consumption, OK. However "better image quality"?... no no I'm sure not.
CMOS is more sensitive but it has lots and lots of noise. So, all the newest camera's have their image-processors trying hard to filter it. The result of this is a big crap. The main point is that CMOS is cheaper than CCD and easiest to produce.
All the really great quality cameras like RED Cam Mamiya Leaf and other professional ones has a big (and expensive) CCD sensor (or sensors). ;)
Comment by Austin Chapman on August 3, 2012 at 2:05pm Sandro,
I wish all the great cameras had CCD sensors but that's simply not true. The RED epic uses a CMOS sensor and so does the ARRI Alexa.
Image quality is subjective. There will be people who prefer the look of CCD over CMOS and vice versa. I see pros and cons, there's another great read on image quality of the sensors overhere.
Also for the product link you can find it on my original post over at art of the story.
Comment by Dan on August 3, 2012 at 2:19pm Might I ask what kind of camera mount is that on your quad?
Comment by Flying Monkey on August 3, 2012 at 3:10pm Get rid of your vibrations and the rolling shutter goes away. Focus gets tighter too. At the very least try the "earplug isolation mount" it's amazing how well it works. The downside is that the camera has to sit on top of a plate with the earplugs glued to it, with as wide (and long) a base as possible to prevent it from swinging around. 

Comment by quadrocopter on August 3, 2012 at 3:32pm Most Lumix cameras will support Video out, you can try putting in video mode, and then holding the trash button for 10 + seconds, it can take up to 30seconds.... then Voila video out :-)

Austin, oh yeah... you're right. RED cams has CMOS sensors with faster reset. So they suffer on rolling shutter but it is almost irrelevant on the result. I was sure that RED were all CCD... but so, I noticed that I were remembering of Mamiya backs... not RED cams. Here is the link: http://www.mamiyaleaf.com/products_aptus2.asp
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