I spent the last New Year's Eve with my girlfriend and her family. We had a nice time and I took many photographs of her, including this one. Yes, there is a photo underneath the digitally superimposed oil paint. No, she didn't look this spooky in real life. In fact, those nails and eyelashes were really pretty on her, and I think they are so even in this distorted production.
I have experimented with digital oil paint once before. See: The Terrible Cyclops.