i have verified that this project can work within the limitations of the 328p, or uno and nano boards. 

above image is of the wiring to the nano board. it has a 3.3v pin as well as a gnd pin.

here is the output in raw data to display as a put my hand in front of sensor and remove it. this is not image mode it is the math intensive calc output mode, with a lot of detail. the limits of performance are from math, and from bandwidth. it works with 982 bytes of ram, and i think stack mem overhead is about 100-200 bytes max. i'll be implementing some math tricks to greatly improve performance, however again the main issue is the bottleneck of data from i2c. so optimizations of data bus is being worked on.

BTW this performance is very close to the arm teensy 2.0, and teensy-lc.

in video above i move my hand about 6 inches in front of sensor and move it away a few times with an up down chop motion just to show data updating in real time.

Any way the latest code that works on arduino will be uploaded tonight. it also includes resolution doubler functions that really on data caching. it uses 256 bytes of ram, but speeds up performance by 4-5 times. this is from reduced i2c mem calls and caching math results.