The TZtouch can use Axis brand IP cameras that support MPEG4 Video.
TZT software (V2) is also compatible with the Axis Pan/Tilt/Zoom Cameras (relative PTZ) (MPEG4: Part2) and the AXIS 241Q Quad Video Server.
The problem is that currently AXIS no longer makes a camera that outputs MPEG4. Sometimes you can find one on the used market or dealer stock.
TZT software V3 is planned to be compatible with MPEG4 and H264 (making TZT compatible with virtually any AXIS IP Camera)
Overall, I prefer to use composite cameras because the lower cost, higher res, less complex, and wide availability of choices. IP cameras save wiring and can be advantageous depending on the install. The video server is handy because you can use normal low cost cameras then the send the video by IP.