Fully featured photo restoration software like Photoshop - and GIMP - with practice can help you perform miracles with damaged images
Scan Photo Negatives Using a Scanner- read comments too
A great old photo - pity about the spots (using GIMP)
How to restore old photos in Photoshop and Lightroom - tutorial definately doing this for the fair or at least for gifts for mom's birthday
How to Scan, Store, Edit and Restore Your Old Photos ~ Great tips and a step-by-step Tutorial on DIY heritage photo restoration. Some interesting tips. Make color photo, b&w, then sepia
Chinese man mastered Photoshop late in life, now repairs old pictures for free pics]
Restoring an old photo isn’t all that hard. We'll show you how to restore those precious memories using these simple 7 steps in Photoshop.
Timelapse of the colorization and restoration of a damaged photo. From the Gizmodo website.