RSIA (Really Simple Image Alignment)
RSIA is a simple algorithm for auto-aligning images client side in Flash apps and is written in AS3.
It is a hill climbing algorithm which uses pixel color differences for the cost function and penalizes exponentially for a smaller overlap area. You can test it below by draging the top image over the bottom image and seeing the amount of error. Click the Start Matching button and wait a few seconds to let the algorithm do the work. Please excuse the clunky interface, it might get some attention later in the future.
The load additional image links are broken. Try these sets for additional examples:
http://mugur.com/static/photologue/photos/cache/Alex_thumbnail.jpg
http://mugur.com/static/photologue/photos/cache/Erin_thumbnail.jpg