i converted the image to LAB mode and messed with the Lightness channel to get a selection that looked about right...saved the selection and re-opened the original image...pulled the new selection in and modified the background...then i messed around with the face to get a good color saturation (in my view anyway)....reduced the contrast a bit created from the flash...and cropped it ...
the suggestions you've gotten from others about scanning in at the highest resolution your machine will take and reduce it to what you need in the end are right on.....and then the important thing is to get the correct selection of the individual....once you've got the selection the way you want it you'll be able to change the background and the selection anyway you want....
good luck.