7.) Now we will open up this file in Paint Shop Pro 8, or any version you have. We will zoom in again by choosing 5+ under 'Zoom by 5 steps' or anywhere between 300% to 400% in Zoom will be fine.
As we see in the original image, there are soft shadings near the edges of the plushies. Darker pink for the rabbit and pale yellow for the cat. So to do these shadings, we will start off by using the eyedrop tool 
to get the light color pink of the rabbit onto the color palette. Once you have that color, click on it in the color selection and get a slightly darker shade similar to the one below. (Click thumbnail to enlarge)
8.) Now, select the airbrush tool and make sure the settings are similar to the one below.
9.) Now go to 'Layers' -> 'New Raster Layer' and name it "Pink shade." Make sure this layer is highlighted in the layer palette before proceeding.
10.) We will now begin by airbrushing on the edges of the rabbit's body. Don't worry about the airbrush going outside the lines of the rabbit. What really matters is the shadings on the inside edges of the rabbit. Make sure to stop when you come across the areas near Takuto, because we will switch to a smaller airbrush size, so it won't go onto his white fur. Try a number 5 brush and shade in the edges of the rabbit areas near the cat. This is what it will look like now.
11.) Next we will do the shadings for the cat. Create another Raster Layer like in #9 and name it "Yellow shade." Now make sure this layer is highlighted before proceeding.
You can stick with he number 5 brush or go back to 9. Either way is fine, it all depends on how you want to color it. Since Takuto's fur is white, we will start off with an original yellow color. Try to choose a more creamy yellow, such as #FFAD5. Do the same thing with the rabbit, and color along the edges. This is what you should have now.
12.) Now we should give some shading to Meroko's red bow, so we'll make another new Raster layer and name it "Bow shade." Use the Eyedrop tool to get Meroko's red bow color and change it to a slightly darker shade of red such as #8A0202. Then shade accordingly like it appears in the original image, by coloring close to the lines.
If you feel that this shade of red is too dark, you can always change the intensity or opacity of this layer in the 'Layer Palette' by moving the arrows back to a lower desired number such as indicated below.
You can always zoom in and out to check to see if these colors work well in the final gif size. Now this is what you should have when you are all done with the shadings. The first is when zoomed in 400% and the second is the original and final gif size.
This is not as complicated of a gif, so there isn't too much shading involved. When you are happy with the results, Go to 'Layers' -> 'Merge All (Flatten)' and save your work as a different file name. Now it's time to clean up the edges!
13.) Next, click on the Magic wand tool 
and make sure the 'Tolerance' is on 200 and Feather is on 0. Then click the wand on an area outside the two plushies, until it selects a field similar to the one below.
14.) Now choose white in the color palette and flood fill the pink and yellow areas outside the plushies that we don't want. You might only need to flood fill several times to clean up all the unwanted areas since the tolerance is put up so high. Once you clean up the edges, you should now have this.
Nice and clean-cut looking now. We are going to now save our work and make sure it's still a .bmp file.
Taking a look back in the original size, it looks just about what we are looking for. If you want to edit anything else or change the palette size for the gif, now is the time. I recommend doing this with MS Paint. When you happy with the final look, let's then move on to preparing the image for the animation!
