If you are a mouse user, I recommend using the Pen tool because you can have greater control over your cuts, but it will take you about 10 times as long to do a picture. If you don't know how to use the Pen tool, Designs By Mark has a great tutorial on how the Pen tool works.
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If you have greater control with your mouse than I assume you do, try the Freehand Pen tool. You draw your selection freehand, and then it will smoothen out for you afterwards. You can still see the vector points and you will be able to move those around as you need too afterwards.
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If you're a tablet user (ie: me) use the freehand lasso tool. If you want to be really precise then you can go right ahead and use the pen tools, but by using the Freehand Lasso you can work really really fast.
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