Arduino + Image processing

I have an Arduino ATMega 328 microcontroller board but it doesnt have enough memory to process images. Which is the lowest and cheapest Arduino microcontroller board which can handle images for image processing?

There isn't one.

Image processing is usually the domain of much bigger processors, unless you want to play with simple low res images.

ya, I want to work with simple grayscale low resolution images for things like edge detection, shape recognition etc using a CCD or CMOS cam. Is there any microcontroller board for that?

Depends how lo res your lo res is.

I would go for the LPC range of processors. They are a 32 bit ARM processor and some variants have enough ram for a simple image.

http://www.embeddedrelated.com/groups/lpc2000/1.php

However, I would suspect you would be better off developing stuff like that on a standard PC and only transfer it to an embedded processor when you know exactly what you want to do.

http://www.cs.cmu.edu/~cmucam/

Yes but you can't do:-

for things like edge detection, shape recognition

with this set up on an arduino.