Something similar to this can be achieved in photoshop using the Gaussian blur filter and the "Fade Filter" function (I don't know if this is in Older versions of Photoshop, but it is in CS2 and CS3).
For this, I'm going to use the Wallpaper I use on my Motorola V360 cell phone.
First, open an image, then click Layer --> New --> New Layer From Background... from the menu.
Then Apply a Gaussian Blur, 5 pixels seems to work really nicely.
Then, click Edit --> Fade Gaussian Blur... from the Menu, and set the blending options to either Overlay or Hard Light. I used hard light.
The ending result has the colors warmer and brighter, and edges are a little softer.
Play around with the settings (Like Opacity, different blending options ect.) and get creative and use this in conjunction with other techniques, and you will get some amazing resluts. This little trick is how I get my wallpaper's colors to get so warm looking ( http://www.animeonline.net/gallery/s...500/ppuser/539 )
If you want change the coloring of the image further, use what you learned the in this threads primary tutorial to help more.