I could help myself, I was pretty thorough with this tutorial. So if you knew some of this already, I hope aren't offended.
My version of Photoshop is German, so it could be that I didn't get all the terms right (I used a PS translation page, but they don't have every term). And there should be some differences because you have Elements and I have CS.

	Open 1x02Sherlocksmiles.psd. - You can do that by dragging the file from Explorer (or what that is called on a Mac) into Photoshop. - Or if psds are already assigned to Photoshop, just doubleclick on the file. - You can of course also open it from inside Photoshop, by clicking File > Open. Make a new file: File > New. Since we'll be using a picture from my Sherlock smiles picspam as example, the width for this new file will be 400px, height 300px and the resolution 72.
	Now you need the Layers tab. If it's not there yet, click Window > Layers. Or just F7. From 1x02Sherlocksmiles.psd choose the "Sherlock smiles 01" layer by clicking on it in the Layers tab. Now you can either keep it clicked and drag it into the new file or you release the mousebutton and click into 1x02Sherlocksmiles.psd's window and drag the layer from there into the new file's window. Now you can close 1x02Sherlocksmiles.psd and save your new file. Always save! You never know when Photoshop decides to crash. Just a simple Ctrl+S (if saving works the same on a Mac), it's really quick.
	Now resize the Sherlock cap. Either with Ctrl+T or by clicking Edit > Free Transform. That link symbol you can see between the 100% of width and 100% height is important. Always click it when you need to keep the aspect ratio. If there's one thing I find annoying when looking a icons, it's seeing distorted pictures. Now you can change the width/height by putting numbers in these fields or by pulling on one of the corner points (if you use a point that's not in a corner, it will break the aspect ratio). I resized to 32%.
	So this is our picture now. A bit dark.
	Go to Image > Adjust > Shadow/Highlight. I don't know if there are as many options for you there, there were less when I had PS 7. You can slide around a bit, if you don't like what Photshop offers you there. I like to make the Shadow Radius higher. I can't remember the numbers I used for this picture in my picspam, but now I'll make the Shadow numbers 38, 50 and 48, which is brighter than the picspam pic.
	Sherlock so far. A bit blurry.
	Now duplicate the layer by pressing Ctrl+J or rightclicking on the layer and choose Duplicate Layer. Sharpen the upper layer: Filter > Sharpen > Sharpen. Now the background has gone a bit too fuzzy for my taste.
	Make a layer mask for the upper layer by clicking on the Add Layer Mask symbol. Then you have a white square between the layer's preview and its name. To edit the mask, it has to have been chosen. If it is, there's a white border around it. If it isn't, click on the white square.
	Now we need the Paintbrush. And it gives you the colors black and white, this is the degree to which you'll erase from the mask. So if you use a shade of gray, there will be something gone from the picture, but not all of it. And the great thing about masks is, that nothing if ever really gone (unless you accidentally drew on the layer instead of the mask). If you erased too much, you can just bring it back by drawing over that bit with white. Draw with black (I used a round 27px brush with soft edges) on the parts you want gone. Since I wanted to get rid of the somewhat oversharpened background, that's what I erased.
	That's what the layer mask should look like now.
	Should that background still look too fuzzy to you, you could use Blur. Filter > Blur > Gaussian Blur. I used a Radius of 1.0 pixels.
	To add a bit of contrast, click this symbol and choose Levels from the menu.
	Slide to something that looks good. I ended up with the numbers 16, 1.20 and 225.
	The show is a bit greenish, but I prefer warm colors. Click that symbol from 2 pics up again, but this time choose Selective Color. Because I'm lazy, in my picspam I reused this thing with pretty much the same settings, so some of these settings aren't even visible in this picture. First of all Method has to be Absolute. Reds: Cyan -50 Yellows: Cyan -20 Blues: Cyan +5, Yellow -15, Black -25 White: Cyan -5, Yellow +15 Gray: Cyan -4, Yellow +2
	And this is our result.
	I prefer natural colors, so I didn't go crazy with Selective Color. But I could: White: Cyan +25, Yellow +13, Black -15 Gray: Magenta -3, Black -3 Black: Cyan -20, Magenta +12, Yellow -15

If you have questions, just ask. :o)