You are correct.
The type safety built into the heart of CCR relies on generics which are, of course, not supported on .Net MF
It would be possible to write an interop layer for DSS, but if all you want is one camera that's a lot of work or not much benefit. An alternative approach would be to write a DSS service that implements the webcam contract and communicates to the camera on the panda board using a protocol that makes sense to you, either a custom protocol of your own devising, or just write a simple web server and use it as an ip camera (there is already an ip camera service)