Black line Method
originally given by David Rowley

Select and open an image preferably that is not too fussy such as a building, car, still life or something similar.

Start Start Image

Duplicate the background layer by dragging it over New Layer icon at the base of the Layers Palette.
Go to Filter>Blur>Smart Blur. Set Quality = Medium. Mode = Edge only. There is a choice with sliders so experiment. Try Radius = 30 Threshold = 50. This can take a while, depending on image size, and ends with a white line image on a black background.
Invert the image (Ctrl +I) and rename ‘Line drawing’.
Duplicate this layer as in step 1.
Name the duplicated layer ‘Outline’ and switch this layer off by clicking on the Eye icon.
With the ‘Line drawing’ active, add a layer mask. Use the method shown on pages 19 or 25 if using Photoshop Elements.
Select a large soft brush and alter the Mode in the Options Bar to Dissolve.
Make sure the foreground colour is Black
Paint over the layer mask to suit different images.
Make the ‘Outline’ layer live and alter the blend mode to Multiply, Overlay or Soft Light or whatever takes your fancy!
You can add different filters at various stages, alter opacities and blending modes and end up with a host of different images.

Final Final Image