Perhaps you'd be kind enough to share with us an algorithm for decoding an n-level recursive solution (e.g tower of hanoi) into a sequence diagram. Or if thats too easy how about the "relaxed traveling salesman with holidays" solution.
In short I believe that what you are asking for is seriously impossible ( at least today

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Sequence diagrams ellucidate the behaviour of a system in a particular state under a specific set of circumstances. In order for a reverse engineering tool to create/design a complete set of behavioral models from a structural description (i.e code) it would need to understand and anticpate all possible states and environmental conditions that the system may experience. If and when it could do that successfully neither you nor I would have any ecological use. For then, not only could it RE it, but it could possibly FE it into sentient lifeforms that mey (probably) have no use for us.
Forgive me for the vitriol, but in three or more years of this forum I have seen the same question over and over again.
"A" sequence diagram, regardless of the UML 2 enhancements, still cannot represent the behaviour of a system succintly and clearly for ALL possible behaviours. To repeat myself again (tautologically speaking...) a sequence diagram is best used to investigate, analyse or resolve what the system should do under a given set of circumstances given that said system is in a particular state. It is a design tool not a system descriptive.
The structural description of a system i.e. the code, knows nothing of the environment is which it is operating. I appreciate that this is a sweeping statement. However, it is, or at least should be, a basic assumption for any developer. Therefore, can I (the developer) anticipate the entire universe of input information and state conditions that may exist when (my) code is invoked? From my (the architect's) perspective, not in my lifetime. Moving on from that, are the expected outcomes of these unanticipatable conditions specifiable and realisable? Not this side of the Styx.
Consider this. A web service class to return the current TOY from the operating system "clock" - no input parameters, output to be an XML document whose form is defined by a schema. Simple eh? Try it as an exercise. In 20 seconds I can envisage 16 possible outcomes/behaviors.
best wishes
bruce