On the surface, the serial camera you point to should work fine on a Panda, although RS232 level is unnecessary and a TTL level device would actually be easier to attach to the device - no intermediary level shifter adding complexity.
I don’t like to rain on your parade but I think that the constraints of the serial camera and the Panda will not give you what you are trying to achieve, or at least not meet your refresh rate expectations.
Think about the constraints like this:
What resolution are you going to use? 160120? Figure out how large a captured image would be - assume 8-bits per pixel, RGB meaning you get 160120*3=57600bytes in a raw format, which will obviously compress in a JPEG, but it’s a good starting point.
What baud rate are you going to use on the serial port? Default is 38400 baud, it can go up to 115200 baud.
Now you can figure out approximately how long the image will take to transfer over the serial port. Check out something like http://web.forret.com/tools/bandwidth.asp?speed=38400&unit=baud to give you some idea. For our 160*120 image and 115200baud, it will take 4 Secs to transfer the image to the Panda.
Based on all that, you can get an idea how quickly (not !) you could take a capture.
The Panda has limited memory - you need to buffer the data you get from the camera and put it somewhere. Where is that going to be ? Direct into a web response? Temporarily onto an SD card? That is also going to affect your speed of refresh.
I don’t think this is the right technology to achieve something that gives “realtime” interactive feedback like your potential use shows. If you want a shot every 10 secs (or every minute) for timelapse photography or later playback to see what the dog in the back yard got up to, it’s probably an ideal solution.