I have connected Digitizer to MPC5604E. We have referred Video Encoder Wrapper Application note and configured the microcontroller for MJPEG encoding.
I am getting the data at the circular buffer but it is not getting refreshed, I am doubting the MJPEG configuration as there is no sufficient information on MJPEG configuration and JPEGIn Configuration Stream.
Though the resolution headers in JPEGIn stream is tweaked for 640x480.
FFC0 header, 01E0  Vertical size, 0280 Horizontal Size.
Below attached is the MJPEG config Code FYR & FYI.
Original Attachment has been moved to: MJPEG.txt.zip
I'm sorry for delay, I was out of office and I talked with expert right now. The basic recommendation I got is to check if the MPC5604E can understand the data received from camera. What kind of camera do you use? If the format of the stream from camera is not recognized then the circular buffer will not be refreshed. It is necessary to check the polarity of all signals - you must compare the datasheet for camera and settings in MPC5604E. Next step is to check the data received from camera. Circular buffer contains data which are already encoded. So, the idea is to use subchannel buffer which contains raw data received from camera. Configure the camera to send test patterns and then check the raw data in subchannel.