1.a. The resulting image is generated from this mask. I had a hard time getting the final result - lot of trouble with making the mask and getting back to the original after fft'ing and shifting, although conceptually it's very simple...
1.b. I used a gaussian mask of size fspecial('gaussian', 15, 2)
2. Sharpened
3. I used a ghost image put through a 2d averaging filter of size 10x10, then added to the original scene, and then the whole thing turned into grayscale to make it extra spooky.
4. I used histeq. This street isn't particularly lively.