If so, then perhaps the Microsoft Academic Search page would be useful to you, or perhaps PubMed and the various tools which help visualize PubMed data.
This has been done by 2 of my friends as their graduation project. But it does not work in the fashion I wanted.
I looked http://citeseerx.ist.psu.edu/ and liked it but I could not walk the citation graph as I meant. I looked at the about page and they also do not mention about 'Citation Graph' as a feature. But it seemed to me someone could use that site to create a 'Citation Graph' easily.
In the past they also had a "cited-by" link-set on each document, which provided the ability to walk forward to documents which cite the one shown. But looking at their cite now (it has been a while since I looked at them) the forward citation links appear to be missing, which looses half the citation graph.
...but it's usually unusably slow. I'm curious: where would you get the data?
Many papers databases will give you a formatted list of citations, which would be easier than trying to extract it from a set of arbitrarily formatted PDFs.