Saw this on Blendernationlast week, its an app for the iphone that can take a picture of you and then turn it into a 3d model.
In the comments on the blendernation post i found a comment by Hood about a free desktop alternative at this link. so i went there and downloaded the 1kb java app called "Photo-To-3D Converter" to turn a couple of still pictures of my face into these 3d models.. quite a fun app.
it also saves the models to vrml, 3ds and a few other formats.. i used blender to load them and manipulate them, you can use whatever 3d app you feel comfortable with. I got a warped model coz i only gave it two images to work with.. apparently the more images you give it the better.. also better lighting probably helps.
check out their site for some spectacular examples.