Hi Raghu,

"... is this possible by a 8051 core ?"

As far as TCP/IP and UDP/IP are concerned: Yes, that is possible. A recent product of mine, built around a SiLabs C8051F022, uses UDP/IP to communicate with a server over GPRS. I did not implement TCP, because the protocol overhead is much larger than the messages that are normally sent and with GPRS you pay for each byte sent and received.

You might be interested in this Circuit Cellar article by Jim Brady, who built a web server around a C8051F005. It would be perfectly feasible to do the same on any other 8051 based controller, but it may get a little sluggish.

I think that Steve was only talking about the actual moveable platform on which a camera would be mounted, to do pan and tilt.
Camera image processing is out of reach for even the fastest of 8051 cores, I think. An ARM or a DSP would be called for.

Regards,
Rob.