In this tutorial, you'll take the picture from this to this:
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Open the picture you want to work with. If you want it icon sized, it should be 100 by 100 pixels. :]
I'm using a jade dragon figurine photo.
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Make a new layer and fill it with color 76D3FF. Change the blending mode to Lighten. Make the opacity set to 29%.
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Make a new layer and fill it with color 764755. Change the blending mode to Hue. Make the layer's opacity 56%.
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Now choose a grungey type brush and paint a few spots in the background. Figure out what the focus point of your picture is, or the main thing, (in my case it's the dragon) and don't cover it. If you don't cover it up, the picture looks a lot better and professional.
Change the settings to Overlay and 21%.
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This gives us some texture.
Finally, take a smaller grungey brush and just make a few spots every so often, but it should be a lot sparser than the last step was.
Change the blending mode to Overlay at 37% opacity.
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And yay- you're done!