Managed to get data out from OV7670 camera using an Atmega8. I found it easier to code on AVR than ARM, but mostly for the connectivity part, ARM is much faster on the processing part and the amount of available memory is perfect for my application :)
Anyway, I am able to get out images from OV7670 over the serial connection and display them on PC. Of course is slow, cause teh serial connection is very slow, take few seconds to get one image out @160×120 pixels, but if I take out the serial loop is quite fast, around 12 fsp. With some assembler I guess I can go half the nominal frame rate (30 fps). Anyway, for my application 10-12 fps is more than enough considering the fact that I’m using an Atmega8 for this running at only 16 Mhz.