1. A system for extracting regions of interest derived from a wide-angle digital camera, comprising: an image data processing circuit that transforms non-rectilinear digital images into panoramic images, and compresses the image data using an image data compression algorithm with block-encoding of at least parts of said images; and a server associated with the camera receiving streamed compressed panoramic images and responding to a request from a client by extracting at least one requested region of interest from the panoramic images; wherein the server extracts the regions from a transmission encoded data stream as a set of discrete encoded blocks to re-encode for transmission, wherein the extracted the regions comprise image regions of interest, and the extracted set of encoded blocks remain encoded for collecting and collation corresponding to the regions of interest for subsequent Huffman encoding and streaming to the client.