In CS2 I used the blur tool on the background at 100% strength.To get close to the insect without touching it I used the magnify tool and the blur tool radius at 4 and strength at 10%.Hope you think its made a difference!
I used the blur tool in PS elements to pass over the noisy areas in the background.I used normal setting and 85% strength.I used the magnify tool to get close to the edges without blurring them.
In PS elements 2.0 I used the clone tool to reduce the halo effect.I used the zoom feature and soft brush effect to get real close to the edge of the subject.