Indeed. And look for TDR's Smudge Sucks tutorial, you will see how professionals do it.
I just watched TDR's smudge sucks tutorial. I usually do it like he does, but with less hue changes - maybe I should do that more. And then once it's all done I use smudge to clean it up so you can't see the "brush strokes" (unless I actually want them visible)
I also use alot of layers, shape the objects, lock transparency, and do things that way. Instead of freely brushing, which works but is less precise than I usually want it to be, I use the mask tool alot, and then it makes sure I don't go outside the boundaries of the mask (plus is a nice way to get really sharp edges. I don't own a tablet so it goes a bit slower for me.
In my skin there ae 85 different layers. The one on the bottom is the original skin, so I suppose 84. 55 are actually visible in the final product, which the other 3 are turned off.
Then save as a tga and convert to BLP and TADA!
New nifty trick I picked up. If you use VM to get your vertex maps, they are of weird dimensions and proportions. get the maps on blank white, then double the size using nearest neighbor. this gives you like 802 by 700 something. Stretch your texture bilinearly to those proportions and when you save it and shrink it back down it will match the mesh perfectly. Resizing the mesh to fit normal skin proportions gives you less accuracy.
And just to note for the newbles. Multiply works way better than burn, screen better than dodge. burn and dodge are only useful when you're trying to make shiny metal, and it takes practice to do it without it looking like shit.
Also, "see how professionals do it" usually means "see a way to make it look good." In this case they're closely related but not the same. The way you used smudge just looks like a blurry chunk of grey blurry.