Ive recently been given the oppertunity to work on documentary that involves restoring some degraded footage thats around a century old and quite important historically. Its already been transfered to digital (not sure how well...) so im guessing its just a matter of putting it into photoshop and going through frame by frame and touching them up.
Im quite confident that i can do this but have never attempted it before and some tips would be useful... If there and any good plugins i should know about or guide on the net you could direct me to i will be eternally grateful :)
Sounds more like a question for the After Effects forum, there's plenty of genius there that can help you.
You should get a little more specific with what you need to do to the footage, maybe provide a link to some frames.
To work with video footage in Photoshop you might need to, first, create a .FLM (Filmstrip) file. This file format creates crazy huge files, so you'd need a ton of RAM.
With Photoshop, you'd probably end up doing more traditional rotoscoping, which is very time consuming. Just guessing at your needs, I'd really suggest AE, or some other dedicated post-processing app.