Have you looked at the Foscam cameras? 80 bucks, wifi, does everything you want and more. They're all over ebay and Amazon. Cheaper than an arduino and an ethernet shield and far more capable. If you want to hack them they're running embedded linux and you can find instructions on the web for uploading your own code.
Yes, sounds useful, but this is a school exam project, so buying a camera that does it all is not an option.
Servos instead of stepper motors? i think that'll be fine, however, i still need some directions on what to buy, the camera is a logitech C120, and its for indoor use only. (so far anyway)
I've already been looking through the forums, and googling a little, but it's hard to find out whats good and whats not. so, if you have some experience with some good servos or motors, please point me in the right direction.