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MENU
GRAPHICS

First, duplicate your original image by Ctrl-C and paste it in a new window (Image>edit>Paste in new window...), Now, Image>Image>Mode>Indexed... to only one of the images

A new box pops up and you select as below, Use Custom Palette (Web) and Floyd Steinberg Colour Dithering (normal)

If you look at this example you can see that Jack's face is all splotchy from this, which is what the tool is supposed to do, but you might not want!

Now, we Copy the Dithered and Paste in on to the Clear one.
What we now to is take the "eraser" tool
And set it at an opacity of around 50 and erase the top layer, because it's the only one with the dithering! This is what you do to get a clearer image where you want it! And our finished piece?

Voila!
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