Am I having a memory problem here or an application problem?

While I'm no where near an expert on this stuff, based on the information given, it looks like Diag69xp.sys (a driver file, possibly for you camera) used an illegal operation at that specific memory address. What this means, I frankly have no idea. But Blue Screen of Death Stop errors are probably one of the most vaguest ones there are, so you'll just have to Google it.