Okay, I been attempting your steps, and came to the conclusion I'm a complete idiot when it comes to this, I'm doing something wrong completely your instructions are simple enough but I can not get the same result. Two possible questions could be the problem.

First when you use the brush for the first time on a transparent layer is there a particular color that makes it easier to work with I tried grey to black shades thinking that would make it easier to adjust color. but not sure

The second step I got lost on was:

9. Click on first layer, hold ALT and choose H/S adjustment layer. Check "group with previous layer" and click OK.

When I attempt this step I don't see any options to choose H/S adjustment layer or group with previous layer. Then it hit me by H/S adjustment layer do you mean change layer mode to Hue or Satuation? I tried both and still had problems. and still dont see an check group with previous layer option. So I'm completely lost there.

Today in my ignorance I realized something I was doing wrong I was using magic wand tool when you said magic lasso tool, I total mis read that so I'm going to try that now but that step 9 still threw me off so if you could clearfy that i might figure it out from there :D

Thanks again for your advice its very kind of you to take a few min and help people.

Chris