Coloring Black and White Photos

Open up your black and white photo. The one I used is shown below and I got the picture from art.com:

First you must select Image>Grayscale and then select Image>Increase Color Depth>16 Million. Now your picture is ready to be colored.

Select the Freehand Selection Tool and apply the following settings:
Selection Type = Point to Point
Feather = 1
Antialias = Checked

Carefully draw around the area you will be recoloring by left clicking at a starting point and clicking as you trace around the shape. Zoom in to get a better outline (View || Zoom In). When you are back to the starting point, double right click your mouse button will join the lines. When you have more than one area to select, simply hold down the Shift key then select the other area, double clicking to end your selection. You should now have "marching ants" all around the area you traced around.

Promote the Selection to Layers (Selections || Promote Selection to Layer). Double click the Promoted Layer and give it a name that is a representation of what you have selected (Example: Hair).

Select the Flood Fill Tool and set the foreground color to the color you want to fill the area with. You can play with the coloring to suit your photo. Apply the settings:
Blend Mode = Normal
Match Mode = None
Opacity = 100
Sample Merged = Checked

Flood Fill the area. Set the Layer Mode from Normal to Color. Adjust the Layers Opacity to suit. Click Cntrl + D to deselect the image.

Continue making selections, promoting the selections to layers, changing their layer mode to color and adjusting the layers opacity and deselecting.

When adding color to skin sections of the Photograph:

Select the Freehand Lasso Tool and draw around the skin section, zooming in on the image will help with detail. You will need to deselect the Eyes or any other area (example: necklace, eyes, nose). To select multiple areas, hold down the Ctrl key , and with the lasso tool go around one eye, then right click on the eye. Now hold the Ctrl key down again and do the other eye. Then the other areas not included in the skin tone color (mouth, etc).

Promote the Selection to Layer. Name it skin.

Flood Fill the skin selection with color:
Red = 255
Green = 203
Blue = 153
HTML: #ffcb96
Light Skin Tones: #fedec2
Notice that the flood fill only fills the skin areas, not the mouth, eyes, etc. you deselected.

Change mode to Color, Blend layer opacity, then deselect the image. Continue selecting the mouth and filling it. To color the eyes, follow the directions below:

Select the eyes, promote to a layer. Select the airbrush tool . Set the Color Palette"Foreground" color to your choice. Click and paint a circle of color over the selected eye. Notice since you have the eyes selected, the airbrush color only goes inside the selection. At the layers palette, change the Blend Mode to Dodge:

If required, adjust the Layer Blend Mode until you have required color depth..

Merge All Layers.My finished product is shown below: