GNUCITIZEN has posted information on linksys wireless IP camera hacking. It turns out that some models send the administrator user name and password to the computer when the setup wizard requests a connection. In theory, someone could send the request and harvest your passwords wirelessly. This seems like a pretty careless oversight. We would think that linksys will probably remedy this before too long.
Update: Part 2 has been posted.
Update: Part 3 has been posted.