confused The tutorial had you lay out the colors like that? Interesting... I don't think I've seen one do that. I guess it was to help with lighting and such. For realistic hair, though, you'll need to do some detail work. (
Good tutorial, albeit different technique. You can apply some of the info here, though.)
For blending colors, you can lower your opacity and use the eye dropper tool to help you get the right tones. There are a lot of different techniques for blending, though, so I would suggest searching for a tutorial that peaks your interest and go from there.