Ok, here is a little tutorial on the faces, i can't say if it's the best way to do it, but it what I have been doing:
1. Find your image, I usually use Google image search (a useful feature is to set the type to "Face"). Remember to aim for a pic that is: unsmiling, closed mouth, directly facing camera.
If you find a pic where half the face looks good, but the other half has a problem (e.g. over-lit, under-lit, wrong angle, closed eye) you can clone and mirror the good half and "stitch" it together with a little editing in Photoshop.
2. Now that you have your pic, crop to the relevant section (the face

) and copy. If there are any obvious blemishes (e.g. very dark or light areas) you may wish to remove them with clone too at this stage, but it is not necessary.
3. Open the default face01.jpg image to serve as a template and paste your image on top. Adjust the transparency of your image layer so that you can see both layers clearly.
4. Re-size your image until the features (eyes, nose, mouth) align with the ones on the template. Eye alignment is of particular importance. Restore full transparency when done.
5. Use the colour replacement tool to set the skin colour your image to match with the template. If necessary, adjust brightness/contrast to create a better match, whilst retaining detail. Try to avoid the eyes, eyebrows and lips.
6. Colour the yellow area at the bottom of the template with skin color.
7. Blend the edges of the image with the lower layer using the smudge tool and the clone stamp tool.
8. Alter the ridge of yellow hair to match the player's actual colour. Depending on their hairline your may need to reduce or extend the areas of hair.
9. Save (as facexx.jpg), create a template (all black) add to the gamesys.ini and test in game.
10. Make further adjustment depending on how it looks (it is unlikely to be perfect first time) Remember once the face is in the game, you don't need to close it after each adjustment, just click on the player twice and it will update.
Hope this is of some help

I'll upload those two faces in my thread later.
Edit: spelling/typos.