A low cost camera by implementing the major functions in host software is provided. This is accomplished by sending raw, digitized data from the camera directly to the host. The increased volume of raw data is handled by either an improved compression/decompression scheme using lossless compression, using lossy compression or using a shared bus with higher bandwidth. By moving such functions as color processing and scaling to the host, the pixel correction can also be moved to the host. This in turn allows the elimination of the frame buffer memory from the camera. Finally, the camera can use a low cost lens by implementing vignetting, distortion, gamma or aliasing correction with a correction value stored in a register of the camera for later access by the host to perform corrections.