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BladeNinja, you cand find the answer from the video and from this thread. but, i use mouse.
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I can't believe you don't have a tablet, your mouse control is awesome. Anyway, nice vid, you should do more of these but for more complicated templates such as feet and hands.
PSI, you can try, but i don't think it won't work and I would recommend to get GIMP or Photoshop.

Cause it might be hard to get all colors right, and it would take shitload of time to create the blurs cause you don't have blur tool in MS Paint.
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the reason it didn't help is because gimp is so much different then photoshop try it you will see what i mean