Yeah photoshop helps with multiple layers, and to make the image bigger then one sheet of paper, all you need is Rasterbator or Posterazor, which turns it into a .pdf and you can choose the height width and how many sheets you want it to take up.
nice, the face lacks detail though. not really feeling the background colors, I mean, it looks nice, but clashes with the black/white. other than that, awesome work.
for my stencils i draw them on paper first then use adobe illustrator, live trace touch it up and for the printing on how many sheets you wont it to take up i use microsoft publisher works perfectly the same way stick em to card, cut and spray
seeing how this is the toy section imma post this video to show people how to make a stencil http://youtube.com/watch?v=7WuXWFXmQL0
right now KMD is officially in dallas texas and the graffiti scence is everywhere ppl kill freeways around here