To do this image I followed instructions from this site http://www.tutorialized.com/view/tutorial/Surreal-Photo-Manipulation/67407
I will touch on some of the problems that I found the tutorial did not touch on very clearly. First off, if you do not have CS5 then you cannot do puppet warp. Under edit transform the regular warp does just as well I think though. The most problems I had was cutting off the head and using the elliptical tool and filling it with a gradient to make it look kind of natural. I found out that to remove the head is just doing a simple mask to erase it. Then in order to fill the elliptical tool the circle you make must be already on the skin itself and not on the background otherwise filling it will not work. You can move the gradient circle around to find where you like it afterwards. Another thing that I found difficult and just took some playing around to figure it out was using the perspective tool to make the shadow.











