Okay, so a little fiddling and changing a couple of set parameters and I have code running on my Samsung S2 that will unwrap a Bloggie lens.
Based on code by Flong but running against camera and not a saved image.
Now a bit of work to port ideas from roborealm to turn this into an obstacle avoidance sensor. Will have to find or code related image processing in Processing or Java. Although, might have found the best library in BOOF! BOOF has processing library (already just now installed on my machine), camera calibration, structure from motion (OMG!), Fiducials (read Markers) (OMG!).
So, ready, steady GO!