There's a "how we did it" now:
Last Thanksgiving, [filmmaker Anthony Cerniello] traveled to his friend Danielle’s family reunion and with still photographer Keith Sirchio shot portraits of her youngest cousins through to her oldest relatives with a Hasselblad medium format camera. Then began the process of scanning each photo with a drum scanner at the U.N. in New York, at which point he carefully edited the photos to select the family members that had the most similar bone structure. Next he brought on animators Nathan Meier and Edmund Earle who worked in After Effects and 3D Studio Max to morph and animate the still photos to make them lifelike as possible. Finally, Nuke (a kind of 3D visual effects software) artist George Cuddy was brought on to smooth out some small details like the eyes and hair.
(via The Dish)