Here is an amazing easy to follow smudging tutorial.
I found this on a site and did it 3 or 4 times and it turns out better and better everytime.
Credits: Forsaken
http://www.pixel2life.com/forums/lofiversion/index.php/t44834.htmlGood luck.
Sorry about the images being too small, I guess There's a max Image capacity for posting on here (: