Los Angeles Pop Art created this poster of the 1972 classic The Godfather out of the entire script of the movie (using a technique called "micrography," where tiny words are fashioned to create an image)
http://www.lapopart.com/productdetail.asp?Ident=96 - via The Presurfer
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Then, once you've shot/edited your footage into the clips you want, apply a blur to the whole frame, with a gradient, leaving the center of the frame (horizontally) in focus.
Then, finally, if you add a little saturation (pump it up to seem all "happy bright") it'll look like it's been painted to emulate a scene, like a model is, instead of the true colors of an actual scale location.
That's it! Pretty easy.
But still, it was still pretty and cool to look at...
Just make sure when taking the video, have the aperture to the smaller, about f32 or so (for the extremely great depth of field) and have you shutter speed a little bit on the fast side, about 1/100 or faster, to make it more sharp (preferably take it using a tripod). you might also need to crank up your ISO if the image is dark, but that will make your footage be filled with noise... so just make a good balance between the three
Then just follow what stephanie said in post production, and do the blurs, and all... and it is indeed VERY easy :D