I just finished a camera project using the Arduino and the Omnivision ov7670 FIFO digital camera.
I have also developed custom software that will allow you to take pictures with the camera and save them to an SD card. The software also allows you to set various parameters of the camera such as color enhancement and edge enhancement.
The web site is: http://www.psycho-sphere.com
I also have a new book out called "Beginning Arduino ov7670 Camera Development" that can be purchased on Amazon.com to go along with this project.