This is unfortunately incorrect.
All LinuxMCE does, is send Get Video Frame commands, to device drivers controlling the camera. For IP cameras, such as the Panasonic IP Camera, this is a GSD device that literally talks to the web server on the IP camera to fetch it a single JPEG image, and return it in the buffer.
Cameras that do not work over IP, such as USB or analogue cameras do not have a facility to grab a single JPEG file, so directly. So a device driver was written around Motion to do this, which returns a single JPEG frame. The Motion wrapper also sends "Motion Detected" events, when Motion senses them. This is the extent of involvement with LinuxMCE.