Cool: After creating the mask and changing the background the image would be looking like its pasted there or colored edges. So for this you have to refine/feather the edges. You can do this as follows:
1: for creating mask you can use a brush at 0 % hardness . So that the edges looks like blending with the background.
2. If you use quick selection tool then you can find the refine edge tab/settings and from there set the smoothness and feathering of edges.
3. You could blur the mask just a bit.
The key here lies on the perfection of mask.
In photoshop Path tool is used for creating paths and then you can use other tool over it.
So its better to use other tools. Pro use Pen tool for there selection but its very hard to use for me so I use quick selection tool and then modify the mask edges with brush tool.
Selection and retouching is done by mixing several techniques as per situation.
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Krow: nice try. Effect is looking good but the overall Image is not creating the effect you would have experienced at the time of shot.
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My Mother.
Shot taken Indore, Hand Held, retouched and made a 10x8 print.
Cool: Here for creating mask I selected background. I first used the quick selection tool and then refined the edges with brush tool painting white and black.(White reveals, black hides in mask). And below this layer placed another layer filled with the choosed color and effect.
*img137.imageshack.us/img137/2290/singlehajiri1600x1200.jpg
Hajiri: ( I am using this as background in a webpage).
Here I used another technique by making selection with "color range". Color range helps you to select particular colors. And then used the brush tool but this time not on edges but over the selection to get the non selected colors . And then pasted the selection over a new layer.