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I was wondering about installing the Raspberry Pi as a video recording device and connecting a USB camera to it. Of course, I'd rather compress it using something like MPEG. Does the hardware support that in any way, or would it all have to be done in software?

Heck, if I could compress the video, I could stream a live feed through the internet, to make a crude "nanny cam"!

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Theoretically, you will be able to do so, based on the information on Broadcom's page: http://www.broadcom.com/products/BCM2835

The BCM2835 has 1080p30 Full HD HP H.264 Video Encode/Decode capabilities, the only question is if and when someone will come up with a driver that supports that kind of functionality.

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