Abstract-Applications of digital imaging with extreme zoom are traditionally found in astronomy and wild life monitoring. More recently, the need for such capabilities has extended to long range surveillance and wide area monitoring such as forest fires, harbors, and waterways. In this paper, we present a number of sensor arrangements for such applications, focusing on optical setups, auto-focusing mechanisms, and image deblurring techniques. Considering both the speed of convergence and robustness to image degradations induced by high system magnifications and long observation distances, we introduce an auto-focusing algorithm based on sequential search with a variable step size. We derive the transition criteria following maximum likelihood (ML) estimation for the selection of suitable step sizes. The efficiency of the proposed algorithm is illustrated in real-time auto-focusing and tracking of faces from distances of 50m~300m.We also develop an image restoration algorithm for high magnification imaging systems, where an adaptive sharpness measure is employed as a cost function to guide the fine search for an optimal point spread function (PSF) for image deblurring. Experimental results demonstrate a considerably enhanced robustness to image noise and artifacts and ability to select the optimum PSF, producing superior restored images.