Adam,
Here is an example of the different masks and adjustments I made to this photo. I'll do my best to explain them.
-The first layer you see is called "stripes". I added an adustment layer and selected Hue/Saturation. The problem with the original picture is tha the stripes and black parts of the clown all have a strong blue color cast. I used this layer to desaturate the colors (-50 on saturation if I remember right). The blacks go black and the stripes are now white rather than blue. When you first add the layer, it is going to make the adjustments to the whole image. Hit ctrl+I which will invert (notice the black box?) which will allow you the "paint" the adustments onto the image using a white brush. If the effect is too much, you can either use a higher number for the desaturation or set the opacity of the adjustment layer less than 100%
-Next is "Extra Orange". In the original photo, the face is a much different color of orange than the bottom fins. I added another hue/saturation adjustment layer and adjusted the hue so the face would come close to matching the rest of the body. It doesn't need to be the exact color as the face is normally slightly different, I just thought it looked weird in the original. Same process as above, invert the layer and use a white brush to paint the face a slightly different hue of orange.
-Overlay. I added a new layer (shift+ctrl+n), fill (shift+F5), and select 50% gray from the contents box. This will turn the whole image gray, but don't worry. Select overlay from the blending mode (drop-down menu towards the top of the layer box) and the picture will look the same as before. Use a white brush to lighten the image or a black one to darken the image. I only wanted the fish brighter, so I used white. This completely blew out the highlights and the fish was really bright, so I set the opacity to 10%. This method, from what I read, is a better method than using the dodge and burn tools as it is a non-desctructive layer and doesn't actually alter the image.
-Curve. Pretty simple here. I used the same process at the beginning of this tutorial to set the white, black, and gray points. This helped remove much of the blue color cast.
-Layer 1. I always make a copy of the background and alter that one without touching the original picture. That way I can see what I have done. I used this layer to clone and patch out the "snow".
Hopefully that helps you understand what I did with this image. This is normally more editing that I like to do, but I really wanted to try and save this picture and it was originally very sharp to begin with.
Todd,
I processed the image starting with a jpeg and it looked pretty bad. Starting with the RAW is always a good idea.
Example: