To even the moderately advanced PS users, this is pretty basic stuff. But for other amateurs out there, here's how I turn a full color image into a 2-color image: 1) Open IMAGE, go to Image>Mode and click "Grayscale". Go to Image>Variations and click "Brightness/Contrast". Mess with the contrast until the whole picture is nearly all black and white (with very little gray). I also like to lighten up the image, so the black isn't so dark. Save as IMAGE B&W. 2) Open "Image B&W", go to Image>Mode and click "RGB Color". The image is still B&W, but now you can add color to it. Duplicate the Background Layer. Now create a New Layer, and fill it using the Paint Bucket. The color (Color1) you put in the Paint Bucket will replace the white spots of the B&W image. With the New Layer on top, set the Blend Mode to Darken. The image is now B&Color1 (instead of B&W). Save as IMAGE COLOR 1. 3) Open "Image B&W", go to Image>Mode and click "RGB Color". Go to Image>Variations and click "Invert". What was black is now white, and vice versa. Duplicate the Background Layer. Now create a New Layer, and fill it using the Paint Bucket. The color (Color2) you put in the Paint Bucket will, once again, replace the white spots (which were formerly black). With the New Layer on top, set the Blend Mode to Darken. The image is B&Color2. Save as IMAGE COLOR 2. 4) Open "Image Color1" and "Image Color2" if they're not already open. For each image, go to the Layers Pallette, click the right-facing arrow on the right side of the pallette, and click "Flatten Image". Duplicate the Background Layer in each image. Drag the Background Copy of one image onto the other image, and make sure that the images are aligned. Select the top-most layer and set the Blend Mode to "Lighten". Now, the image should be made up of 2 colors, Color1 and Color2. Flatten and Save the FINAL IMAGE. **Please tell me if something is unclear or downright incorrect.