The only storage used for that project is the 1024 bytes of Eeprom built into every Atmega328. If you want to save pictures from a serial camera onto the arduino you will need some storage device. You could wire up an SD card or use the FlashShield/Dataflash.
I took a little break from this project ( for my beer drinking project

) but should be able to have something working this week. It can be hard work, especially since documentation for this cam isn't too clear. I still haven't seen a FULL picture from it yet, but I get most of the data. Are you actually considering buying this cam, or just curious on progress? Because it WILL work, I just had to start from scratch...
sakisgen, schematic for what? This serial camera or my old project? I haven't made any fancy schematics for that project yet.
---Jared