This survey addresses a number of challenges and research areas identified in real time image processing for state-of-the-art hand-held device implementation in networked electronic media. The challenges appear when having to develop and map processing algorithms not only on fading, noisy, and multi-path band limited transmission channels, but more specifically here on the limited resources available for decoding and scalable rendering on batterylimited hand-held mobile devices. Networked electronic media requires scalable video coding which in turn introduces additional degradation. These problems raise some complex issues discussed in the paper. A need to extend, modify and even create new algorithms and tools, targeting architectures, technology platforms, and design techniques as well as scalability, computational load and energy efficiency considerations has established itself as a key research area. A multidisciplinary approach is advocated.