A versatile full-field range imaging system has previously been constructed. This system is configurable in software to produce either high precision or fast acquisition range images. Indicatively a 10 second exposure has been shown to produce a range image of sub-millimeter precision, whilst video frame rate (30 fps) acquisition provides for centimetre precision. Currently the acquisition time of the system is to a large degree constrained by the off-line processing of the frames by an external computer. This paper presents an alternative to the off-line PC image processing utilising an Altera Stratix II FPGA. Processing rates up to 30 frames per second have been achieved with the added advantage that many of the previous systempsilas existing digital electronics can also be accommodated, providing for an even more compact and flexible system.