I know what the WHOLE problem is. Davy, you make your skins (heads) in Picture It, then you open them up in People Putty, right? Then you add some features from putty like bullet holes, scars, and wrinkles or some other things, right? Then you save the skin in putty as a .jpg, right?
You aren't doing anything wrong, you are just missing a step that I do but Nige doesn't. After you save the skin, close Picture It and restart it with the saved skin from putty. Just flip the canvas horizontally, and if the skin is very large like 10.67 high x10.67 wide with a dpi of 96, this is the default size that people putty saves skins for some dumb reason, then go to the dpi area and make it 300 dpi. The size will go down to 3.41 high x 3.41 wide. Just that simple. Yeah, Davy, go take a look at Nige's heads. See what I mean.
http://www.nigesworld.com/index.php?p=1_2