I actually haven't been using Photoshop for very long (little less than two years) and I think the only reason I can do anything with it is because I've had years of experience using Paint Shop Pro 6 to make pixel dolls and I've read (and watched!) about a billion tutorials.
As for how I color my pieces... well it varies greatly, since I'm constantly experimenting.
Mostly, I use the technique described in this tutorial:
[link] and very recently, I've been trying to paint things in the way this tutorial shows:
[link]Other tutorials I regularly use are collected here:
[link] They've all helped me immensely in one way or another.
I wouldn't know what the heck I was doing had I not read them.