Well, if you want your client to see the mjpeg stream, you need to send the whole http response. HTTP client like browser or media player like VLC need a mjpeg stream that looks like :
HTTP/1.1 200 OK
Content-Type: multipart/x-mixed-replace; boundary=myboundary
--myboundary
Content-Type: image/jpeg
Content-length: 12345
[image 1 encoded jpeg data]
--myboundary
Content-Type: image/jpeg
Content-length: 45678
[image 2 encoded jpeg data]
...
NOTE: As Ergousha said in an answer, you must have an empty line after the Content-length field.
By the way, why not redirect your client directly to the mjpeg stream ?
You can use http://ipcam/mjpg/video.mjpg AXIS IP cameras for example.
If you just need the image through HTTP, you have to set the correct header and the MIME content-type
image/jpeg. To decode the image, you have to get the byte data and you will get jpeg encoding. Then you will have to decode jpeg to get an image in a specific format (something like yuv420p I think). I've check on my ip camera, and its stream is not base64 encoded I think.
Precise your needs, I will try to help more.
my2c
EDIT:
Well, I suppose you do something like :
client : connect to proxy,
get example.com/camera1.mjpg,
while not the end
recv
yourproxy : wait connection
connect to camera,
get 10.0.0.123/camera1.mjpg
while not the end
recv buffer
copy buffer
send buffer to client
That to say that you must send the correct header to your client. To be sure use a tool like wireshark to spy on the packet and be sure that after your client has issued a HTTP GET you send to him the correct MJPEG stream (like the one I describe at the beginning of my post ...)
m2c