When I used to launch model rockets some years ago (all prior to 9/11) there were several legal "conditions" that had to be followed.
First of all you could not be within 5km of any airport, ever.
Second if you were near any coastal area you had to give prior notice to the local coast guard so that no one mistook it for an emergency flare going off, causing expensive search and rescue operations.
Third you had to have clearance from local fire brigade re fire hazard issues.
This was all necessary for even an 600-800 foot launch, which was usually the minimum height launch. Typical launch heights for the "tiny model rockets" is up to maybe 3600 feet - hardly orbit! The good news is that small cameras have frequently been used to take pics once the rocket reaches maximum height and the drop chute deploys.
http://en.wikipedia.org/wiki/Model_rocket
http://en.wikipedia.org/wiki/Astrocam
Legally speaking, things have changed now I've been told - even in the US (the home of model rocketry where schools and boy scout groups have been launching models for decades) I believe you now need a special license to even buy the small model rocket propellant engines, and sales of propellant and/or engines has to be recorded and reported to Federal authorities.
As for launching something to the heights you're talking about - amateur groups have reached the 50 mile "space" height - very expensive, very difficult ie a 200-300 kg rocket that's 5-6 metres tall, requiring LOTS of money (and in Australia probably unlimited red tape to launch it) and enormous expertise is required to build these things.
