It's funny, I've been researching a related issue lately. I've been wanting to do an AVR-CAM type project, but use a DSP (dsPIC?) or FPGA for image processing and a higher resolution CCD/CMOS sensor.
I've considered tearing apart cheap multi-megapixel cameras (there are some that list the 3 or 5 megapixel imagers from Omnivision). ST Microelectronics also has sensors that are readily available. Digikey carries both the sensors and their associated image correction and translation chips from 640x480 to 2Mpixel . You'd need both chips due to the raw output of the sensors being very raw and being a LVDS pair. They do have one assembled 640x480 card at Digikey, though. About $20 for that, although the connectors might be a bit more than a hobbyist wants to mess with.
Digikey:
http://www.digikey.com/scripts/DkSearch ... 35&Site=US
Datasheet:
http://www.st.com/stonline/products/lit ... vs6524.pdf
Major issue with most of my prospects are that most need an external lens. this obviously becomes a bit of an optical or mechanical engineering challenge then.
One other option you could go with is build a video digitizer, then you could use a cheap, raw NTSC or PAL micro video camera or even your normal digital camera or a camcorder for a video feed.