How is barcode recognition done?

Hi
Sorry if I have posted this in the wrong forum, as I am a little unsure where this really belongs.
I am currently working on a software decoder that will be able to take images similar to barcodes and decode them. I already have the encoder working and I am able to create the encrypted image, but am strugling to create a reliable decoder that can analyse an the image and decode it.
The decoder I have at present works fine if the image being decoded is EXACTLY the same image produced from the encoder (i.e. image has not been altered e.g. stretched or resized), since my decoder knows where to find pixels, but if one pixel is off by so much as one pixel location then the program will fail to decode. As you can gess this method is far from elegant, so I am really wanting to know if anyone has any ideas or experience on algorithms or anything I should be looking at to improve my decoder. I have searched the net and found a couple of programs that does image recognition, and can pick out barcode etc and decode them. The third link below is particularly good, as it shows the program is capable of decoding a photo of a barcode - it is able to pick out the barcode and then decode it.
Here are screenshots from 2 applications.
http://www.pdf417kit.com/screenshot.jpg
http://www.intelcom.ru/img/example/prngrow2.bmp
http://www.snapfish.co.uk/slideshow/AlbumID=19811658/PictureID=430558628/t_=20428522
Here is an image of some encoded data generated by my encoder:
http://www.snapfish.co.uk/slideshow/AlbumID=19811658/PictureID=430558627/t_=20428522
Anyone have any tips as to how I can make my decoder more flexible?
I dont know much about the Java advanced imaging stuff, so some good online tutorials as to what I should need to know to do what I want to do would be good.
again sorry if I am not very clear with my problem, I will try to answer any questions you may have.
thanks

What's a bar code? It's a rectangular striped area. So you can defocus your picture, locate a small rectangular, gray area, and you have located the bar code.
You can try finding the small rectangle, correct scale and orientation, make its contrast better (to have a image in white and black) and draw some lines in the bar code (like a laser scanner) trying to find a pattern with stripes.
When you find a rectangular striped area, you can try interpreting the stripes using all algorithms that your program is able to handle. When you read something that makes sense (for instance, several of the bar codes have error detection and correction codes), you have the correct bar code.

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