Here are 4 tutorials:
1:
http://www.webworksite.com/pencil_sketch_tutorial.shtml
2:
http://www.escrappers.com/pencilsketch.htm
3:
http://www.escrappers.com/pencil.html
4:
http://www.escrappers.com/pastel2.htm
Use a copy of your original photo.
Once you have it done, you can play with effects for more of a pencil look.
GO TO the top tool bar-----filter>filter gallery>brushstrokes
I played around with the stroke length set it to 20 for the effect I wanted....
Spray effect>(play around with it til you get what you want)
Direction>right diagonal
I see you are working in PSE 3 which must be very similiar.
I am a new PSE 4 learner and am just as frustrated as you.....I thought I wanted to learn something a little bit more challenging...lol...I think I bit off more than I can chew! I am a die hard DIP 9 user and it is so easy to see the whole page at a time, move layers front and back, transparencies, filters elements, etc. sooooo I'm gonna play aroundwith the effects & switch between the two programs for a while...sigh!