Any suggestions for a small ip camera or ip video converter?

Question

I want to make the following configuration: a USB booster (e.g. http://www.satzuma.com/usb-computer-controlled-missile-launcher.html ), on top of which I want to add an IP camera and streaming video to Android.

This means that I need a small camera (so the booster can move with it) that supports RTSP and provides the H.263 or H.264 video format.

Since IP cameras are usually larger, I have advice on using some other camera connected to the launcher, and connect it with some kind of converter to the IP signal. This is a great idea for me, but since I'm new to cameras, video format, etc. I can not find such a product (camera and compatible converter to provide me with RTSP, H.26X format).

I would really appreciate any ideas, product suggestions, or any thoughts on this topic.

Thanks,

Nemanha