Here are a couple of videos demonstrating hand coloring in Photoshop CS5 and Elements 9.
Even if you are using Elements, watch the CS video first and then the Elements version. In the first video I share a very simplistic and basic explanation of masking as it relates to digital hand coloring. The whole subject of layer masks is quite a bit more extensive than my description, but for this topic, it might help you understand the concept a little better.
I mention in the first video that one of the reasons I sometimes use these techniques, is that it gives me a starting point for when I do hand color with the pastels. It’s cheaper and easier to experiment in the computer than on actual prints.
I tried to find some information on digital hand coloring using iPhoto, but was unsuccessful. I am not sure if you can do it in iPhoto, but if any of you know a way to hand color using that program, please let me know.
Watch this video first: