An image processing system and method is disclosed. The image processing system can be configured for use with a mouse scanner system operable to scan a document. The mouse scanner system includes a scanner built into a computer mouse and the image processing system includes a scanner software application operating on a computer. The scanner includes a positioning system operable to output position indicating data and an imaging system operable to output captured image data. The data is sent to the scanner software application where a feedback image is constructed and displayed on a display in real, or near real, time to allow the user to view what areas have been scanned. The scanner software application also constructs an output image that can be printed, saved or communicated.