Glamour Technique
Duplicate the Layer.

Add 10 Pix Gaussian Blur.

Fade blur somewhere between 30% - 50% ( this can be done under "Edit" or in "Layers" ) .

Apply UnSharpen Mask at 18% - 50 pix - ThreshHold Zero.

Use the Eraser Tool to add sharpness back into key areas... the eyes, the mouth, etc. 

Flatten Image.
Before
After
www.caughtintimephotography.com
Below you will find an image straight from the camera ( re-sized for web use only ) and with a combination of the method described above and also using a neat freeware program, Clean Skin.   Clean Skin is worth downloading, but I didn't like the results until I tried this alternative.  I took the original image and added the method above and saved it.  Then I opened it up in the stand alone Clean Skin program and applied it's filters.  I saved the Clean Skin file as a copy.  Back in Photo Shop I copied and pasted the Clean Skin file over my edited file.  I reduced the opacity of the Clean Skin layer until I liked the look.  I also used the eraser tool over the eyes and mouth of each person.  I prefer the combination Glamour/ Clean Skin results best.  Red eyes also corrected.
Original
Clean Skin / Glamour