In the Lord of the Rings forced perspective is used to scale down the actors to Hobbit and Dwarf Size. Interesting enough, a lot of those effects are Practical Effects!
This is why Cirdan and I gave it a shot! (no pun intended)
Besides Forced Perspective they used scale doubles, prosthetics and greenscreen shots to scale down Elijah Wood, John Rhys Davis etc.
But the master discipline of forced perspective may be the moving forced perspective, and i´m really curious if you can realize that effect also in a low budget way.. maybe we´ll find out in the future!
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