Removing the Background from a Picture in Photoshop Elements 3

In the options bar, switch to the eraser tool, pick the 19 pixel hard brush, and start brushing away the arm and bits of remaining background. Be careful as you get close to the edges of the baby and the pumpkin. Remember ctrl-Z for undo. You can also resize your brush using the square bracket keys as you work. Use Ctrl-+ to zoom in so you can see your work better.