It would be great to have a tool that removes backgrounds but as far as I know that does not exist. Using an eraser tool to make a halo then zooming in on your photo (400%+) to erase or paint pixels helps. Moving back and forth between 100% and 400%+ and making small adjustments helps.
Photographers often use a blue or green screen (or just plain background) to make it easier for removing backgrounds. The magic wand tool helps if you have stark contrast but in a photo like your example, I think you'll have some work to do.
Here is an example of using: zoom in/out, eraser (adjusting size), colour picker, paint brush (adjusting size)
Uploaded with ImageShack.us