zoxxo, I had tried that before reading your post and yes, I can say that it works. Setting the Bionic to be a wifi hotspot and running IP webcam on the OG droid. Then using tiny cam monitor on the bionic I could se the video from the OG droid. I only tried it briefly but it seemed like the audio did not come through. Also, since I am in a low signal area and now the Bionic is being a wifi access point getting data from the OG droid, posting it to the web, and then also retrieving it back from the web that is a lot to do, and a lot of data, actually kind of amazing that this phone can handle that. (I think this is how it works??)
It would be great to be able to do it without using the web or ammassing any data usage, just by making some kind of directly coupled network over wifi. I do not know too much about networks or wifi so it is beyond my capabilities to figure it out, and since the rest of the civilized world has wifi and broadband available I am not sure anyone else would be working on a solution. (Where I live, sattelite is the only option.)