The Dynamic Photo demo uses 10 photographs taken with a tripod and different focal lengths and shutter speeds.
The raw photographs were first imported in Photoshop in order to select the ones with the same light (the weather was cloudy) and to align them. Photoshop was then used to manually create distance and brightness maps:
The final photoshop file can be downloaded here (.psd 13MB).
All the images were then imported into Macromedia Flash MX (now Adobe Flash Professional). The distance and brightness maps were vectorized so that mouse hit could be used to infer the best focus and exposure at the mouse cursor's location. Focus and exposure were expressed in floating-point values and animated to provide smooth visual transitions.
The image corresponding to given focus and exposure values was generated by bilinearly interpolating the 4 closest photographs. Image bilinear interpolation was implemented in Flash using a hack involving layers and alpha blending. Decorations were then added.
The Flash project can be downloaded here (.fla 4MB). See the bottom right of this page for license info.
The dynamic photo demo can probably be used with an eye tracker to emulate eye accomodation and adaptation. Applying this technique to stereoscopic images could also be something quite interesting to try, especially if focus is controlled by eye vergence.