Okay, I tried this last night in a game where we were facing a Pugna/Morphling lane...and Pugna was stacking and pulling. As far as I knew, you just placed a ward down somewhere it had vision of the camp and because it granted vision, the camp would not spawn. Rage followed as I watched the camp spawn in full vision.
Looking into it, I found this thread which said something...confusing. They linked a pic as well showing the area it checks for units.
So...even though I've heard from several people it's based upon vision of the camp...it's actually the physical placement of the ward inside these areas?

