Maybe this has been done before but I decided to build a rocket specifically for taking video with a keychain spy camera. I have taped my camera to a couple rockets but I'm always worried about the weight and drag on my low power rockets.
I figured if I put the camera inside the body tube it would reduce the drag and balance the weight.
I took apart the camera and was happy to find that the lens was on a short ribbon, so the board could be inside the body tube and only the lens needs to protrude. I figured I'd make a shroud around the protruding lens.
Pic 1 shows the two main parts removed from the plastic case. The plastic case alone is 1/3 the weight of the whole thing. The board and the battery are nearly equal weight so it will be nice to mount the board to the inside of the body tube and mount the battery to the opposite side of the body tube to balance the weight.
Pic 2 is the cut-away mock-up I'm monkeying with to figure out the placement. Once I get it settled I will mount the camera to the inside of the actual body tube on a balsa "sled" and use a template from my mock-up to place the necessary holes in the body tube. I need a pin hole for each button, the LED, and the reset button, as well as a larger hole for the USB connector. I'll make some sort of plug for that larger hole.
I'm thinking of mounting the camera lens on a small strip of copper bent into a triangle with a micro-screw to use as a set screw to adjust the angle.
Pic 3 is what I'm thinking it should look like.
I plan the host rocket to be a Big Bertha since I don't have one yet and it is a BT-60. The camera seems to fit nicely into a BT-60 with room to spare. I figured I'd upgrade it to a 24mm motor mount.