New answers tagged photogrammetry
I would check OSSIM http://trac.osgeo.org/ossim/ and perhaps also this years Google Summer of Code project may interest you http://trac.osgeo.org/ossim/wiki/GsocDSMGenerationToolForOSSIM
Yes, I think SFM Toolkit (FOSS)is used for this task. Although I have not used it, it is very well reviewed. I have used Stereo GIS by SimWright and had good success. They may give you a free trial.
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