" If that is correct, is it going to be an add-on (ie, mounted externally) or the sensor is to be embedded at the distal end of the scope? "

The CCD sensor is at the end of the fiber optic bundle that conveys the image from the focusing lens assembly. From this point onwards cables link the signals from the CCD sensor to the base unit. And just as an added information the fiber optic bundle also transmitts the high intensity light source from the base unit to illuminate the area being probed. I dont know if this layman description makes sense to you !

Based on information gathered from the net, I am now clear on the basic set up. I just am looking for packaged ICs for handling the signal from the CCD sensor and feeding it to the Video Out point.

Raghu