This Small Business Innovation Research (SBIR) Project will investigate the feasibility of a novel modular image processing architecture. The proposed system will be designed to be compatible with existing microprocessor architectures to allow for commercial product development and market entry in the near future. Additional benefits of the system over existing image processing methods are increased processing speed, on-chip stereo and motion correspondence computation, low power consumption, reduced size (stand-alone or MCM packaged chips) and cost. The work involves research in analytical foundations, as well as experimentation and simulation with a variety of algorithms that can be implemented in hardware. This broad scope of investigations will lead to a better understanding of the issues involved in the actual construction of an image processor and enhance the level of success during Phase II prototype development.