Check here (http://www-mount.ee.umn.edu/~guille/inpainting.htm) and especially here (http://www.iua.upf.es/~mbertalmio/restoration.html). Is anyone pursueing this for software or business purposes?

Also here (http://www.research.microsoft.com/~antcrim/papers/Criminisi_cvpr2003.pdf). (wayyyy too much math for me)

Chromaticity gamut enhancement by heptatone multi-color printing
or
Decoupling Strokes and High-Level Attributes for Interactive Tradicional Drawing

Can't decide which to read first!
I am talking serious.
Rô

some more reading for those interested:
http://citeseer.ist.psu.edu/cs?cs=1&q=inpainting&submit=Documents&co=Citations&cm=50&cf=Any&ao=Citations&am=20&af=Header
http://www.math.duke.edu/~bertozzi/inpaint/inpaint.html
http://www.math.ucla.edu/~imagers/htmls/inp.html
http://www.cs.berkeley.edu/~aj/cs/inpainting/

Is anyone pursueing this for software or business purposes?
i'm not really sure, but i guess it's in the academic state now... only implementation avail. i'm aware of is: http://restoreinpaint.sourceforge.net/

This sounds very interesting, but has anybody turned it into software so an idiot like me can use it?

Well, I can't speak for how idiot-proof it is, but Akvis has turned it into a plugin
http://akvis.com/en/coloriage/index.php