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I agree that their web-based demo (isk-daemon I think) gives crappy results like you said, but imgseek itself gives good results when you put a high level (>98% I would say). It indeed gives fake results on huge database like moe but among the results there is the dupes you want to find because the images in moe which are dupes (see those in the dupes pools) are different scan of the same source, and so the scans are really similar and it is easy for imgseek to find it (fast).
I just say it to say that imgseek is good! but it seems you're gonna do a tool like that by yourself, it's courageous!
I think that "* The ability to search for portions of images:
--> You can search for a certain artist's eyes
--> Or, perhaps, panty styles etc." will be pretty hard to do but it would be amazing!
And have you tryed the delphi-code I found? (I haven't, because I don't know how to get a programm from a source code...) because it contains function that do the Haar transform, and the author gives a link about the Haar transform : http://home.versateladsl.be/epm6604b/ondelette.html (in (simple) french but babelfish is your friend!) and this page links to this page http://www.amara.com/current/wavelet.html in english this time) which seems complete concerning wavelets...good luck!!!
btw, who is this rq???