Smudge tool! I use CS5 as well. You'll want to right click on the droplet/triangle (blur/sharpen) in the tool menu and select Smudge (the finger.) 
Unless the default is smudge (I forget) in which case it'll already be there :V

I usually paint the form and things like eyes/noses/etc first as individual hairs tend to move over the top of them. Fur detailing I tend to do right at the end because it can't be manipulated much without having to do the fine detailing all over again. 

That said, you'll probably find yourself redoing/building up the fur several times before you get it right. 

This tutorial is also pretty old and not completely accurate to what I do now so I would recommend trying to follow some other tutorials as well (particularly ones on form) and looking at references for fur direction/texture. uou

Goooood luck ~

yw c:

I mean I am older than you were at the time

Looks great! I'm glad I could be of use!

Corel painter doesn't have a round brush? o_____________o

I'm glad you liked it! c:

Thank you! C:

y'r welcome.

c: thanks ~

Transparency lock basically prevents you from editing the transparency of a layer. So, you could draw a circle on a layer and colour it in, then lock transparency, and then no matter how much you scribble on that layer you wouldn't edit anything but the circle.

First off those look like mouse strokes, and painting short fur tends to be very hard with a mouse. :s

Your shadows could be darker and the fur given more direction. Also when you draw fur on a tail, draw a skinny (hairless) tail first and then draw fur off of that. :3

Photoshop CS4, but this tutorial works with any graphics program provided that it has transparency control in its brushes. Layers aren't needed, even. (: