Recoloring is the easiest way to change a skin, when used correctly it can produce quality skins. Doing it this way insures you will not not lose any details from the original skin.

Take a look at this picture first.
Step 1:
Open a .dds file in either Adobe Photoshop or Jasc Paint shop pro. Just like in the other tutorials, I will be using Photoshop.

Step 2:
Use the marquee or lasso tool (arrow 1 in the picture) to select what area's you want to recolor (arrow 2 in the picture).

Step 3:
Press [Ctrl] + [U] and the 'Hue/Saturation' windows should pop up (arrow 3 in the picture),
hit the selection box in the bottom right corner of the window (see picture)
just play with the sliders until you reach the color you want.

Step 4:
Keep selecting and recoloring area's until you reach your desired effect.