This paper reports advances achieved within a project called LAICA (Laboratorio di Ambient Intelligence per una Città Amica) on Ambient Intelligence in urban environments. The overall LAICA architecture is described and the unified operative centre developed by Regulus SpA (partner of the project) to collect and correlate data from different sensors and prototypes is depicted. Moreover, the paper describes the results obtained in developing a system for video surveillance in public parks, devoted to create a mosaic image of the scene and to extract and track moving people. Moreover, the system takes the privacy issues into account, proposing a method for face detection and tracking able to obscure faces in order to protect people’s identity.