A digital image capturing and processing system comprising a plurality of coplanar illumination and imaging stations for producing a plurality of coplanar linear illumination and imaging planes which intersect within a 3D imaging volume defined relative to an imaging window. Each station includes an array of planar illumination modules (PLIMs) for producing at least one substantially planar illumination beam (PLIB), and a linear image detection array having a field of view (FOV) on the linear image detection array and extending in substantially the same plane as the PLIB, to provide a coplanar illumination and imaging plane (PLIB/FOV). The PLIB/FOV is projected through the 3D imaging volume, for capturing linear (1D) digital images of an object passing therethrough, for subsequent processing and recognition of information graphically represented in the linear digital images. Each station also employs a local control subsystem for controlling at least one illumination parameter associated with the production of the PLIB, in response to the motion and velocity of objects detected within the 3D imaging volume during system operation. By virtue of the present invention, it is possible to optimally illuminate objects based on the velocity at which such objects pass through the 3D imaging volume, at point-of-sale (POS) stations and like retail environments. Such illumination control ensures the capture of high quality digital images of objects, resulting in improved image processing.