Thanks for the suggestions.
The camera is a requirement, and we decided to go with a 240 line resolution black and white camera. The budget is to be small, and the reasoin taht the 8052 was chosen, was availability. One of the team members already had a development board, which would help to limit the development time for the project, which is to be fully funtional in 10 weeks.

It looks like were going to try analysing the data at the analog level, then taking timed samples to create a rough image in memory. Then use the memory array to determine the control information.

-Chris