90% of photo restoration is using the clone stamp tool and healing brush which you already practice in the last lesson. The next phase is the combine selections in order to target specific areas. Dust & Scratch removal under Filters>Noise is an effective tool in restoring old photos.
Although this is a Photoshop Lesson, you can use the Levels or Hue/Saturation Adjustment Layer instead of Brightness Contract as shown in the lesson.
Colorize a B/W
The secret is to play around with Blend Modes and Opacity. The most popular Blend Mode for Black & White Colorization are: Overlay, Softlight & Color.
Tips: Two methods to create a solid fill layer in Elements:
1. Click on the Adjustment Layer icon in the layers panel. Select Solid Color…
2. Layer>New Fill Layer>Solid Color>OK, then choose color from the color selector dialog.
The advantage of creating a color file layer is that it is very easy to modify the color just by double clicking on the Fill Layer Thumbnail in the Layers Panel.
For your project, I want you to use your own photos from your family archive. I received this photo from a friend of his great great grand father in front of the White House in 1901.