I have been playing a bit with this challenge and have come up with a not bad technique which I will describe below. If anyone wants a copy of the relevant files let me know and we can make arrangements to get them to you. They are too large to upload here. I took a screen shot of the final image which is what I have attached to this post. I should say that I tried a number of different approaches and this is the one that gave the best results. I have simply recorded the steps as I did them.
1- I created a dot grid pattern in 16 bit mode grey scale 300 dpi (I used a CAD program to generate this pattern as its easier to do it there than in PS - if anyone wants a copy of the grid let me know).
2 - copied photo from beginning of this thread.
3 - paste photo above grid and sized the photo to fill the entire project space
4 - duplicate photo layer and turn off the dup layer
5 - move the grid to the top of the layer stack
6 - select all of the black dots (magic wand not constrained)
7 - turn off the grid layer and make sure the photo layer is active
8 - run a Gaussian blur (I used a 43 pixel radius), after running the blur invert the selection and clear the now selected area
9 - move this layer to the top of the stack, the layers should now be in the following order. Top - Gaussian blur layer, middle - grid layer, base - photo layer.
10 - make the middle layer active, select the white and clear leaving only the black dots. This is important as leaving this layer off or removing it has a negative effect on the results. I do not know why this is so as the Gaussian blurred dots cover the grid dots at this point,,,,, but it is what it is. Try it yourself and see if you can avoid having this layer as part of the final image.
11 - scale image up 150%
12 - reduce the opacity of the base layer to 70%13 - merge visible (all 3 layers) or leave project as is
Thats it. I have no idea what any changes to the above will give in the way of results. I do know that if the file is saved as a jpg some of the effect is lost. I tried saving the file as both a tiff and pdf file and the effects were maintained. In addition, as you can see from the attached, a screen shot saved as a jpg seemed to capture the effects.
The grid file is 6.4 megs and the tiff project file is 13.6 megs.