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To further explain Chris' comment, the method you suggested is probably the single largest source of badly retouched skin on the internet, no matter the quality of the original.  Unfortunately, it has been floating around beginner's Photoshop forums since the 90's, and gets re-propagated by folks who don't know the difference between retouching and a gauze-like special effect.  It is almost impossible to find any combination of opacity and Gaussian radius that is acceptable for retouching, except, perhaps, in certain unusual situations (eg, an oversharpened original, small areas of a face, etc.).

There are many better methods available.  Unfortunately, I'm busy until late tonight, but when I get back home, if someone else hasn't already provided you with links, I'll try to look up some good tutorials for you.  Also, FYI, Chrisdesign is a master of portrait retouching, and has done it professionally for many years.

Cheers,

Tom M