I've been playing around for 6 months trying to find a way to render a cartoon effect to my pictures using Photoshop and lately I think that I've come up with something that produces a decent result. Here I will share with you how I do it and feel free to experiment yourself with this technique. On with the show...
First of all, this tutorial uses Photoshop Elements 1 because that's the one I have and the tutorial is possible to accomplish with just about any version of Photoshop, I think.
1. Open an image and duplicate the background into another layer so you have the same picture in two layers. The top one will be the "ink" and the bottom one will be the "color".
2. We'll start by making the "ink" first. Go into filter/blur/smart blur, use the settings in the image I've posted to start and experiment later.
3. After applying this filter, go to filter/sharpen/sharpen edges. This will better define the basic edges of your image.
4. Go to filter/other/highpass and use the settings in the image posted. This will turn the layer into a barely recognisable gray tone image.
For more of my stuff, check out my Photoblog: TakingPictures101.
Have fun and don't be afraid to experiment.