How long would a regular arduino (with a atmega328) take to download a default resolution picture from the camera?
It sounds nearly too good to be true.
Well actually it's the onboard ATMega32 which can do that. He states that you can save images to an SD card via an SPI interface.
I presume the camera is 640x480 max so I would have thought a second or two would be possible on an ATMega32. Not too slow to be a problem for me. I want to set it up to send video over a wireless link and automatically take a picture every 2 minutes (or maybe every 5). That should then be able to store a load on a 2GB microSD and I will have a complete log of what my robot has been doing. If it can do phsical recognition then I would be interested in some stuf involving green lasers 
Despite the lack of info and the possibility of it being a bit slow, it still sounds good.
in what manner does the atmega interface with the actual camera?
As I understand it, the arduino can be set up to just send commands to take an image etc (presumably over serial), or you could use the 40-pin header to have much more control over the display (presumably the display driver circuit) and camera.
We love those gruesome details on its inner workings!
I will make a few enquiries on the other board that seems to use this LCD to try and find out what it use/what the display actually is...
Mowcius