This photo was taken on a Panasonic PV-GS320 digital video camera. Although still images taken by this camera are not as sharp as ones shot on a dedicated still camera, its images can be manipulated to produce lovely photos like this. (It is not a still frame from video. The camera captures still images on an SD card.)
This photo was enhanced using Adobe Photoshop CS3. I created several layers, manipulated each layer with different effects, and combined the layers for the full effect shown above.
The texture effect applied to the image doesn't appear to show up as well in this smaller version of the photo. The original Photoshop file dimensions are about twice as big as the full-size version you can see by clicking on the picture above. If I enlarged and darkened the texture effect on the original file, it would be too much for that version, but look fine for this smaller version.
This is the original photo. The only changes I made was cropping it to a 4:3 aspect ratio (the camera takes photos in a 16:9 aspect), and reducing the size to 640 x 480.