Alright, so i have an idea to make a camera, take a picture of words, like on a board, then have a program read the picture and type the words into a word file, is that possible? Is there such a way to do that with an arduino? Please help!!
No, though you might be able to use the Arduino for limited things. You could use a jpg serial camera, and take a picture and store it to a SD file or transfer it to a PC, providing you don't need more than 1 frame per second. An Arduino just does not have enough memory (and presumably is not fast enough either) to decode text from a photograph. You could also use an Arduino to pan a camera to a position with servos, and with some cameras trigger the shutter to take a picture.
If you have an Android phone, you can get OCR (optical character reading) from various apps. I went to the google play store, and typed in ocr scanner, and there were 56 apps that claimed to do optical character scanning, including google goggles app (I haven't used it, so I can't say how well it works). I would have to guess that iphone has similar apps: https://play.google.com/store/apps/details?id=com.google.android.apps.unveil
I agree this is way over what the arduino can do.
You might have more luck with the new Galileo or Yun boards although I don't think there is a camera interface developed yet.
If you had to do it now then look at the Raspbery Pi board, but even that is pushing it.
Alright thank you guys for all of the information 
im very knew to this and just wanted to see if it was even a possibility, i thought it would be a good idea to have mobile, but if arduino isn't capable of it then that sucks but whatever right? I'll look into the raspberry pi and see if that might be able to do it.
You might have more luck with the new Galileo or Yun boards although I don't think there is a camera interface developed yet.
The Yun should support a USB camera as it has a USB-A port. The AR9331 should have a device driver for a web cam as standard it the linux build. Transmitting the image via the built in WiFi/Ethernet should be fine. What you still can't do is connect the camera to the Atmega chip. Doing OCR or even using OCV (open computer vision) on the AR9331 should be possible. You will need to find an IDE for the Ar9331.
Mark
It's certainly possible (and easy) on a Windows PC. I would expect it to be pretty easy on a Linux PC too.
I haven't seen a smartphone app to do this but I wouldn't be surprised if there was one - that platform would combine the image capture capabilty, resources to do the OCR and the ability to create a document. If you end up doing it yourself, a smartphone would be quite a good platform for it - an Arduino isn't. OCR on an Arduino strikes me as a challenging proposition even if you found one of the modern clones with enough memory and processing power to do it - you'd need to essentially find an open source OCR library and then port it to the Arduino platform.
OCR on an Arduino strikes me as a challenging proposition
Not for the Yun and Tres
Mark
holmes4:
OCR on an Arduino strikes me as a challenging proposition
Not for the Yun and Tres
Mark
Umm, the Tre is not available for general release, so using it would be challenging.
The Yun (if you can find one) only has 64 megabytes on the Linux side. I doubt you will be able to do much graphics processing in 64M as well as running the Linux system.
The Galileo has 256M (assuming you don't mind being tethered to a wall plug or giant battery for the 5v/3a power). I don't know how much memory you need to run OCR without extensive swapping. Perhaps 256M is enough, perhaps you now need gigabytes.