As mentioned in our response to your other post, bandwidth can be reduced by reducing the MJPEG frame rate output by your network IP cameras:
http://skjm.com/forum/index.php?topic=6616.0As for iCam support h.264, we are actively looking into it, but there are, unfortunately, other issues.
We have discussed the legal/licensing issues of h.264 decoding previously, but there are other things to consider when talking about 7 cameras, and that is CPU usage.
You are correct that h.264 cameras use less bandwidth than MJPEG cameras, and that is due to the vastly improved compression algorithm. The problem is that decoding the h.264 video stream to perform the motion detection checks would require a lot more CPU processing power than the MJPEG streams. Multiply that by 7 cameras and I am guessing that most computers these days would not be able to handle it.
This would be the equivalent of streaming 7 1080p HD YouTube videos to your computer at once, in addition to the additional motion detection processing and re-encoding of video to save to disk when motion is detected, the uploading to the cloud for backup, etc.