However what about simple video capture?
what I would like is to stream video captured through an Internet connection. Is this possible? If yes then what video camera can I buy?
Buy an IP camera. You can use your Arduino and WiFi shield to prop it up, if you like.
Would it change anything if rather then streaming video; snapshots are taken, saved on an SD card, and then stream the image files on the SD card?
try sitting in the driver's seat.Look around, then close your eyes, engage drive and steer based on what you just saw. Drive for about twenty seconds, then open your eyes. Repeat.(20 seconds is being generous)
wouldn't that defy the whole point of using an arduino board for this type of project?
That begs the question - what is the point of trying to use the Arduino for this type of project?
if the hardware of this IP camera can already do this then it can also manage another motor to move a pair of wheels.