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Re:GTA4 Google Map With Street View by Svip on Monday June 03, 2013 @01:20AM (#5811523)
According to a thread on the matter,[0] it appears it was done by a script. However, it was not done in a recreated world, but in game.

Which means, they created a script that would walk around the world to specific set coordinates, take screenshots in all directions. Then when done, stitch the screenshots together to form the panorama pictures. Accordingly, this took 140 hours. I am assuming a lack of processing power was influenced by it.

Also, the thread reveals it was done in May 2011.

[0] http://www.gtaforums.com/index.php?showtopic=476068

Re:GTA4 Google Map With Street View by tehwebguy on Monday June 03, 2013 @10:48PM (#5817402)
So they basically recreated the Google Maps car with a script.
Re:GTA4 Google Map With Street View by Svip on Tuesday June 04, 2013 @02:16AM (#5817990)
Given the screenshots, I don't think the player is actually in a car at the moment, but rather on foot. But in a sense, yes.