One algorithm I used earlier is SIFT . If you are interested in implementing the algorithm for yourself, you can see the course notes for CPSC 425 in UBC , which details how to implement SIFT in MATLAB. If you just need code that does this, check out VLFeat , the C library that runs SIFT and a number of other algorithms.
Quote from Jerry Coffin:
Edit: That's right - it is patented, and I probably should have mentioned this for a start. In case anyone takes care of this in US Patent # 6,711,293 .
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