I promised Wes I would post my steps, but I found a nice tutorial that may be helpful (and save me the writing).
I don't consider myself an expert, but I'll add my tips and thoughts here:
Gaussian blur or Dust & Scratches over the entire image is not retouching, it is an effect. Retouching is done selectively (with possibly the exception of color adjustments).
Keep textures. Nothing stands out more than a blurred area, especially around the eyes.
The Smudge tool should be avoided whenever possible (unless you're an expert, and can work with a 1 pixel brush).
Unless you are doing an extreme makeover, what you've done should not be visible.
This tutorial has a very nice list of things to look for when considering retouching. It's worth a read.
http://www.informit.com/articles/article.asp?p=101733&seqNum=3

Vikki Hansen wrote:
> Too far perhaps. Actually only the eyebrows have been changed,
> rather than enhanced. I wouldn't presume to do this to a customer,
> but since this is "retouching" at dpr......
> http://www.pbase.com/image/27394245/original.jpg
>
> digitalWannabe wrote:
> > I've just setup a studio with Alien Bees, Digital Rebel shooting in
> > RAW, converting with C1.
> > In way over my head.
> >Trying to figure out Photoshop CS - but having trouble even with
> > getting Adobe Gamma Wizard to work (view Single Gamma slider
> > doesn't change anything when I move it).
> > I've been lurking a while - and am curious what you Gods of
> > retouching could do to color balance, curves, etc. to bring out
> > this quick shot of my wife.
> >
> --
> Vikki Hansen
> http://www.lifetimephoto.com
> http://www.pbase.com/vhansen/galleries

--
Vikki Hansen
http://www.lifetimephoto.com
http://www.pbase.com/vhansen/galleries