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Cutting out images

Step 1
Open photoshop and have the image you're wanting to use open.
Step 2
Double click the "background" layer to make it turn into "Layer 0". Select your pen tool from your toolbar and match your settings to mine below.
Now zoom into your image and choose a starting point. You need to start to place your anchors along the outside of your subject. You don't need to have your points right on top of each other. Just because you have a million anchor points doesn't mean you'll result in a more precise cutout.
Step 3
Straight areas should not be an issue with your anchor points. Occasionally you will have curves. Clicking along them like you to straight ones will result in pointy areas. To stop that we use the curves tools implemented into the pen. When you get to a curve you simply drag your pen tool and drag it until it lines up with your subject. Best place to show this is around the top of the head. (I apologize that the anchors are hard to see in the example.)
When you're finished with your curves and need to remove the bezier handle hold alt and click your last anchor point made. You'll be able to go back to making less curved lines. Finish doing the main outline of the subject. When you go all the way around click the first anchor point you made to connect the path. it will just appear as a faint line around them.
Step 4
If you have any small spaces go in and outline them as well. Remember to connect your beginning anchor to your ending one to complete the path. Otherwise you'll have a mess. With the settings that are being used the following paths will be excluded from your main one.
When finished right click on your image and click "Make selection"
match your settings to mine below in the following window.
Go to Layer > New > Layer Via copy (or ctrl+j). Delete your layer 0 and you're all done. Stroke is just to show emphasis on the cutout itself.