For Photoshop 7, but I'm sure it can be fairly easily translated into PSP.
Quite easy, non?
I started out with a screencap from Kill Bill, which has O-REN ISHII in it, played by Lucy Liu.
I painted the background black, only leaving her face coloured, and cropped it down to 100x100 pixels. Since the picture is already black and white, I didn't need to desaturate the picture and to adjust it to my needs. So we get this :
I moved her over to the side, since I wanted to use the left part of the icon. You are, of course, free to position her anywhere in the icon.
Then I made a new layer to go on top of that, with color D5CF27, and selected color burn in the blending optionsn and left it at full opacity.
And now we have this.
4. Then I made a new layer, to go on top of that one, and painted it white, with normal blending settings and opacity set to 39 %.
So now we get this :
Now the yellow has faded a little, and there is this blured effect on the black. Muted colors.
5. Then I added, on a new layer, a nifty border by teh_indy , and made sure that it was the same color I had used for the first colored layer; D5CF27.
6. Then I added a gradient on a new layer.
And left the opacity at 13%.
7. Then it is time to add text!
I used fonts 18thCentury , which is the large font (O-REN ISHII) and Carpenter , which is the smaller script font, saying Cottonmouth.
And that's it!