The Camera
The camera I've been using on my system is the Panasonic GP-CX161.  It is sold by a couple different places, but the cheapest I have found it is at Black Widow A/V.  It comes with a short wiring harness appropriate for hacking into most projects.  This baby is a miracle of miniaturization.  It is so small that the lense is actually as big as the circuit board!  Resolution is a crisp 340 lines, and it works in light as low as 5 lux.  It goes without saying that this is a very light weight unit, and perfect for my small electric airplanes.
Camera considerations and options
The camera is an area where you have some leeway on selection.  For a first attempt at aerial video, stick with the camera that came with your system.  In the case of the XCam2 this would be a CMOS camera.  It's not a particularly good camera, but it will give you a taste of aerial video, and allow you to focus your attention on debugging the other parts of your system first.

Once you've been bitten by the aerial video bug, you can replace the camera with a better one. 

Construction Details
The primary work that must be done to the Panasonic camera to make it airworthy is to encase it in a protective enclosure and devise a way to attach it to the transmitter.  Before we enclose the camera, however, we'll solder a short copper wire about 1 inch long to one of the holes at the corner of the pcb board.  This is how we get a good ground connection to shield the camera. (more details later)
 In this picture you can see the first step I've taken to protecting the camera.  A small square of balsa wood was CA's to the bottom of the circuit board.  I tacked it in place by putting CA on a couple of the tallest components.  It doesn't have to be hurricane proof, since a protective cover will be added later.  The top balsa cover was made by making to 'C' shaped bits and laying them on top of the circuit board such that they wrapped around the len housing. The bottom balsa cover has one corner cut out to allow the header (where the electrical connections come off the board) to remain exposed. All the balsa bits were lightly CA's into place.
The next step was to wrap the camera body in some sort of insulated material.  I used some econocote which is an airplane covering material, but you can use some electricians tape.  I tacked the material down all around the edges then hit it lightly with my heatgun to shrink the cover, and then cut a small hole to expose the header.  Note that the short copper wire we soldered on in the first step is sticking out of the covering.  I poked a small hole through the econocoat before applying it to the camera, and threaded the wire through the hole.
The last step is to shield the camera.  I bought some muffler tape, which is a pretty heavy grade aluminum tape with adhesive on one side.  Cover the entire camera body with one layer of tape, and be sure that the short copper wire is still sticking out!  Once the body is covered you will wrap the copper wire around the camera body so it makes good contact with the aluminum tape, then apply one last bit of aluminum tape over the copper wire to hold it down.  I've found this method to provide a very vibration-proof way of shielding the camera.
Click here for a pinout diagram for the camera