Digital photography and image processing isn't something that naturally springs to mind when working with an Arduino board, however with some imagination and different thinking the folks over at the Arduining website have managed to create a single-pixel digital camera. it doesn't simply capture one dot and consider that an image - instead a light sensor is mounted on a servo-controlled pan/tilt sensor. This is then moved about by the Arduino in a set pattern in order to capture light levels across an area with a fixed boundary.
The x and y coordinates of the sensor and the light level for each spot are then sent back to a PC running some processing code which can assemble the data and convert it to a greyscale image. It's quite clever in its simplicity, and a demonstration of the project is shown in the following video:
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