Camera that Sees through Smoke and Fog Underway
tomschuring writes "The Age has a story about IATIA, who have been given $2.7 million by the Defence Department to fund development of a military spy camera capable of seeing through fog, smoke and dust storms. The technology uses a highly sophisticated camera that captures three images simultaneously through a single lens. Images thus resolved from between the particles making up fog, smoke, and dust storms are formed into a single picture of the hidden target."
These guys at stanford have done some really amazing stuff that's directly related. Except that they has literally dozens of cameras (as seen in their ppt), and their research seems to concentrate on multifocal image reconstruction (see ppt slides, presentation is quite good)
Link (has cool results links)
This may also have medical applications in terms of optical imaging - see through the patient (arms and legs only, probably). Shine a bright light at the patient. Capture the ealiest photos that emerge (the ones that had a direct path to the camera). Ignore slow photons (ones that were absorbed and release or bounced around). Voila, instant imaging without x-rays. IIRC, this was in development years ago.