And it doesn't use Photoshop...

This is one of my favorite photos I've taken of my lovely wife, Sandy. I took this almost five years ago with a 5 mega pixel Sony DSC717 using natural light, and for the soft focus effect I hand held a 2 1/4 x 2 1/4 glass slide mount over the lens. It's not as strong an effect as using a Cokin or other commercial softening filter, but I like the effect. It's a great little tip, the mounts cost about $1.00 so I usually carry a couple in my bag.