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How to go from this to 
using PSP 8.
01. I started with this picture from olsen-fan.net. Crop and resize your chosen picture.
02. Duplicate your base and set it's blend mode to Screen at 80%. Then sharpen this layer (optional).
03. Now make a new layer and fill it with #E6E6E6. Set this layer to Burn at 100%.
04. Now make a new layer and fill it with #013D70. Set this layer to Exclusion at 100%.
05. Now duplicate your grey Burn layer (#E6E6E6) and drag it to the top.
06. Now make a new layer and fill it with #9EDEFF. Set this layer to Burn at 100%.
07. Now duplicate your base, drag it to the top and click Adjust > Hue and Saturation > Hue/Saturation/Lightness. Set the 'Edit:' option to Master, leave Hue and Lightness on 0 and set the Saturation to +30. Set this layer to Soft Light at 100%.
08. Now duplicate your Exclusion layer (#013D70) and drag it to the top. Lower the opacity to 50%.
09. Now duplicate your blue Burn layer (#9EDEFF) and drag it to the top. Lower the opacity to 50%.
And that's it, your icon is complete!
Here's are a few more icons I made using the same method:
using PSP 8.01. I started with this picture from olsen-fan.net. Crop and resize your chosen picture.
02. Duplicate your base and set it's blend mode to Screen at 80%. Then sharpen this layer (optional).
03. Now make a new layer and fill it with #E6E6E6. Set this layer to Burn at 100%.
04. Now make a new layer and fill it with #013D70. Set this layer to Exclusion at 100%.
05. Now duplicate your grey Burn layer (#E6E6E6) and drag it to the top.
06. Now make a new layer and fill it with #9EDEFF. Set this layer to Burn at 100%.
07. Now duplicate your base, drag it to the top and click Adjust > Hue and Saturation > Hue/Saturation/Lightness. Set the 'Edit:' option to Master, leave Hue and Lightness on 0 and set the Saturation to +30. Set this layer to Soft Light at 100%.
08. Now duplicate your Exclusion layer (#013D70) and drag it to the top. Lower the opacity to 50%.
09. Now duplicate your blue Burn layer (#9EDEFF) and drag it to the top. Lower the opacity to 50%.
And that's it, your icon is complete!
Here's are a few more icons I made using the same method:
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