Did this using:
1) Adobe Photoshop to turn video into image sequence.
2) Adobe Illustrator to create waking life tracing preset.
3) Adobe Bridge to apply the preset to all the images from the sequence.
4) Adobe illustrator and a script to export all the traced layers back to image files.
5) Adobe After Effects to compile image sequence back into a movie.
6) Adobe Premier to re-sync original audio with new movie sequence.
7) Adobe Media encoder to export as a movie file.
See these tutorials for specifics: