Our friends at Adafruit have put together a detailed tutorial on construction of your own Internet of Things Camera. They combine the Arduino with their data logger shield outfitted with the Eye-Fi wireless SD card (first gen model) and a TTL Serial JPEG Camera shield. The result is a self-contained wireless monitoring camera with motion-sensing capabilities. If you connect this device to a WiFi network, when images are captured, they are sent to the Eye-Fi server and in turn forwarded to your computer, smartphone, etc. Power is supplied by a 9 Volt wall adapter, as a standard 9-volt battery won’t supply sufficient current.
The tutorial contains links to all the necessary code.