Step #1: Prepare your workspace
1. Open the photograph in Photoshop CS3
2. Resize the picture so you can see the area your working on
3. Create a history snapshot of the original image

Step #2: Removing blemishes
1. Select the clone stamp tool
2. Set the brush size to the size of the blemish you will be removing
3. Hold alt and select the source
4. Click over the blemishes to remove them, do not drag

Step #3: Lighten bags under eyes/dark spots
1. Set the mode on the Clone stamp tool to Lighten
2. Set the opacity to 40%
3. Set the source close to the dark spot you'd like to lighten
4. Drag across the spot to lighten it

Step #4: Darken grey hair
1. Select the clone stamp tool
2. Set the mode to "Darken"
3. Set the opacity to ~30%
4. Set the source to mimic the hair you are darkening
5. Brush lightly over the grey spots to darken them

Step #5: Reduce wrinkles
Select the blur tool
Set the strength to 50%
Run lightly over the area you'd like to blur
Adjust the brush strength if necessary