We used a similar method. Set the camera's ip to different address (.19 because it was one away from the DHCP). We then fetched the image file from the camera using Java File IO and URL. This worked pretty well because of the Axis camera constatnly stores and over writes a jpeg in /jpg/image.jpg We then do image processing and display of the results with processing.org's library (its really simplified java, you can extract the library and use it in a full blown java applet. however it needs to be an applet). We are still working on sending the proccessed info back to the crio
Check out Dartmouth's Axis 221 cam
http://wc2.dartmouth.edu/jpg/image.jpg