Originally posted by StreetShooter
1. Convert image to greyscale, adjust levels and curves to taste.
2. Add sepia tone by using Ctrl-U, tick colorize, and adjusting to taste.
3. Create a duplicate layer by dragging the background layer onto the "New Layer" icon.
4. Apply Gaussian Blur to the new layer (I use 5.0 pixels).
5. Adjust Opacity slider to taste (I use 50%).
6. Now, Add Layer Mask > Reveal All.
7. Make sure your foreground colour is black. Choose a small Airbrush (45 pixels soft), and spray the areas you want to appear sharp (ie the eyes, mouth, etc. Eyes most important of course). If you've overdone it, just change the foreground colour to white (or type "X"), undo your stuff, and redo it again.
8. Have fun. Don't forget to flatten the layers when you're done.