Okay here we go.

Bare with me im not exactly known as a teacher in any way or form lol.
1.First off start by opening the image you want to convert.
2.Its a good idea to select the entire image, cut and paste in to a new layer. This so you have a clean background (white or transparent) to see your progress.
3.now that we have our image in a new layer we can begin to work. select the pen tool.
4.Im gonna begin with the hair. Zoom in quite a bit so you can trace the image easier, but remember not to place the anchor points to close. Just make a fairly good path.
5.When your done its important that you close the path.If its not perfect its not a problem. we can adjust the path after we closed it.
6.Now we gonna tweak our path, select the direct selection tool and click on your path.
7.Now that the path is selected we can see all the anchor points.
8.if you want to move a anchor pont, simply click on it and drag, if you want to move a segment, just drag around the anchor points you want to move.
9.To smooth sharp corners we use the convert point tool, wich is under the pen tool.
10. to smooth a segment between to points simply click one of the points and 2 handles will appear, drag until you get the shape you want. You can also adjust the handles sepperatly.
11.Now when you are satisfied with the shape you just click on your path(in the layers panel) while holding down ctrl, or command on mac. This will convert the path into a selection. Now you choose to fill it with whatever colour you like. (if you have cs3 this step will not be needed, cause cs3 automatically fills the path)
12.To make outlines. When you have you path converted as a selection, (if you path isnt select, just click on it on the layers palette while you holding down the ctrl/command to make it to a selection) Just go to edit and chose stroke (make you sure you have a new layer to apply the stroke on) Its a good idea to make new layers for diffrent outlines, this way you can easily change the thicknes of the outlines and erase parts of them with the eraser tool.
Now thats roughly how you do it. One thing that will make it easier is to name every layer, so its easy to go back and adjust things.
Also layer sets is a good idea to keep the file organized.
Also dont forget to use the optional tool avaiable under the pen, such as adding or removing anchor points.
Also the tool bar(when the pen tool is selected) can be very useful for adding and subtracting parts when your making a path.
Please dont hesistate to ask if you have any questions, i know im not the best person to explain.
/Paul L.