What you need for this is 1.) a cricut 2.) Sure Cuts a Lot Software 3.) Free Software... inkscape, a photo editing software package.
I'm not that advanced, but a blog
http://susanbluerobot.blogspot.com/ shows an example that she did with a pic of her son. I believe she gives full instructions.
At some point, I want to master this enough so I can make my own die cuts.. I just love that if I put the time into it, I can! Love the cricut!!