Hi,
I'm using
PS CS2 but what I did should work with
PSP.
1. I straightened and cropped the photo
2. Ran it through Neat Image - this removed most of the scratches
3, resized the image by 100%
4. worked on the faces ( the only restoration on the photo) Man's face used clone and blur tool, Young mans face, painted damaged areas of face and cap with airbrush at about 60% opacity, Lady's Face used only blur tool, working across the damaged and Undamaged areas to blend the damage out.
5. Levels adjustment.
6. resize to original size.
http://img167.imageshack.us/img167/1...ialcropvv3.jpg
With the detail available I found cloning the least valuable option, painting with reduced opacity, taking frequent colour samples, probably the best, Smudging worked well also, combined with painting probably better.
I did no restoration work on the rest of the image, all improvement there was by Neat Image, This is only a quick and nasty job to show what can be done,
its taken me longer to type this post than I spent working on the Image.
Max