TASK 1: Select. Crop. Use Layers. Edit Text.
Let's see if we can make something like this. Go get the source files here. (Check them - you might only need two of them - the portrait and the background. The actual photoshop file is there also for people who need a gentler introduction.)
Then - you might just want to explore and discover but there are a few pointers in this document. Do the basics, then feel free to go further!
While we're at it, let's learn about LAYER MASKS. Here are your instructions and a couple of photoshop files to get started.