There are a few combinations of settings in the chamfer modifier that result in something like this. For example this one (packaged as a modifier preset for the lazy ones).
Thats really strange. Maybe something with the compression? Or something else there at the normalmaps settings? I mean "compression no alpha" for example.
PhotoSculpt is heading in this direction. http://www.polycount.com/forum/showthread.php?t=70506 But it's still a bit of a difficult process, tiling for example.