Abstract: A video imaging technique used in a bagging assembly for magazines, books or the like. The bagging assembly selectively adds onserts and tip-ons to the magazines prior to being bagged in a polybag. The invention includes a method of selectively adding onserts which are contained in a plurality of storage bins by implementing a vision system using a video camera. The vision system defines a plurality of video windows which are used for identifying a dot code pattern which is printed on a mailing label by an ink-jet printer. The dot code pattern identifies which ones of a plurality of storage bins are to be actuated to subsequently dispense an onsert onto the magazine as it passes thereunder. By using a vision system, the dot code pattern can be offset vertically or horizontally, or skewed up to 15 degrees. The vision system creates a pair of video windows used for first sensing reference marks, and three windows for subsequently sensing characters positioned therebetween.