Hmm. I found this which seems promising:
http://sourceforge.net/projects/mjpg-streamer/
Ok. I will try to explain what I am trying to do clearly and in
Checking out your first question. Though the solution here uses a non-streaming set of pictures. It might help. The example uses pyMedia.
Some along the lines of what you want.
If you have a need to edit a binary stream:
Try pyffmpeg and test each available codec for the best performance. You probably need a very lightweight codec like Smoke or low profile H263 or x264, and you probably need to drop the resolution to 320x240.
You have a trade off between latency of the video encoding and decoding and the bandwidth used, you might find dropping down to 160x120 with raw packets for a quick scene analysis and only periodically transmitting a full frame. You could also mix a raw, low latency, low resolution, high update feed with a high compressed, high latency, high resolution, low update feed.