A dual mode digital imaging system has a still processing mode that produces an output image in a first color space and a motion processing mode that produces an output image in a second color space, in particular a first color space that is RGB and a second color space that is YUV. The digital imaging system includes a dual mode digital camera for use with a computer and a processing application for running on the computer, wherein the motion mode processing is relatively less complex than the still mode processing although at least one common control parameter is used to control both modes. The motion mode processing, which is performed using algorithms and software approaches designed to minimize processing time, nonetheless produces an entirely adequate relatively low resolution YUV image appropriate for applications such as videoconferencing. The still mode processing, on the other hand, uses more elaborate algorithms to optimize the image quality of a relatively high resolution RGB output image.