The Axis Network Camera is a video camera and Web server all contained in a package no bigger than a standard handheld camcorder. Plug one side into your LAN, point the other side at an object to display on the network, and voilà, instant video server.
Axis has a good Web site for their products. The information below is from the datasheet on the Axis 2120 Web camera at http://www.axis.com/documentation/datasheet/2120/2120ds.pdf.
Processor: AXIS ETRAX-100
Image compression: AXIS ARTPEC-1