Im just putting this here becaus eI needed somewhere to saveit so I dont forget

If so, it's quite simple. To do the slightly transparent section like that, I simply selected the portion of the photo I wanted to keep normal (using the Marquee tool), inverted the selection (Select > Invert Selection), cut and pasted it to a new layer (ctrl-x, ctrl-v) and lowered the transparency of that layer in the Layers palette (Window > Layers).