This paper presents a novel approach for reconstructing free-form, texture-mapped, 3D scene models from a single painting or photograph. Given a sparse set of user-specified constraints on the local shape of the scene, a smooth 3D surface that satisfies the constraints is generated. This problem is formulated as a constrained variational optimization problem. In contrast to previous work in single view reconstruction, our technique enables high quality reconstructions of free-form curved surfaces with arbitrary reflectance properties. A key feature of the approach is a novel hierarchical transformation technique for accelerating convergence on a non-uniform, piecewise continuous grid. The technique is interactive and updates the model in real time as constraints are added, allowing fast reconstruction of photorealistic scene models. The approach is shown to yield high quality results on a large variety of images.