HAHA cool!
I'll have to re-read your post a few times and try that out...
I think the pixels got worst when I sharpened it too... and then all that colouring made it less and less clear...
This was the original pic... I know~ I think coz I strinked it too trying to fit her skirt in..
I might try it agian with a different picture tmr... i've got one with a bigger head so many that'll work better.. (just that it has a very messy background and I'm not looking forward to erasing the background...)
Although I'm quite happy with the way it kinda blend into the red (eventhough its a bit too bright)
xD I'm having fun~
So do you have to sharpen it again or anything after you smudged it?