Hackergotchi
I'll give just a few tips here on how to do this, 
it's not terribly hard.
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It's easier to go around the edges with the eraser than to use the "magic scissors".
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Don't resize the image until you're otherwise done.
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Don't crop it until after you resize. Otherwise you'll have your drop-shadow cropped off.
The coolest thing about this photo is that Noah was my photographer. He was not quite 3 years old at the time.