While my board (CTS module) seems to work fine, I am still waiting for the final boards to reach here from the factory (over 2 weeks already) and for the FIFO chips (over 6 weeks on the way here!!!). Yes, these boards will come equipped with FIFO chips, so any OV7670 cheap camera modules can be used, there is no need for OV7670 FIFO modules anymore, which makes them much cheaper.
Did a first cleanup and I can compile the code for Atmega16 without issues (SRAM and FLASH). Since I do plan to use only Atmega644P chips on the new boards, there should be no limitations and furthermore, will allow for more future enhancements.
Will start working on updating project documentation and on the PC client to clean it up and see if can make it faster. Should see more changes and information coming soon.