http://www.black-and-white-to-color.com

apparently this is the s/w ( or a version) that is used to colorize old black and white movies, but i have only used it for stills

Picasa is software that helps you instantly find, edit and share all the pictures on your PC. Every time you open Picasa, it automatically locates all your pictures (even ones you forgot you had) and sorts them into visual albums organized by date with folder names you will recognize. You can drag and drop to arrange your albums and make labels to create new groups. Picasa makes sure your pictures are always organized.

Picasa also makes advanced editing simple by putting one-click fixes and powerful effects at your fingertips. And Picasa makes it a snap to share your pictures ¨C you can email, print photos at home, make gift CDs, instantly share via Hello™, and even post pictures on your own blog.

http://www.youtubetool.net/google-picasa/

good luck , best wishes!

1. Open Image
2. Duplicate Background Layer
3. Select Layer 1
4. Desaturate Layer 1
5. Adjust Levels on Layer 1 (CTRL + L) for a nice B&W color
6. Select soft brush for eraser tool
7. Carefully erase the parts of Layer 1 that you want the background layer to show through.

To Add color selection to a B&W image
1. Open Image
2. Create New Layer
3. Set Layer Style to Color
4. Select a soft brush on Paintbrush Tool
5. Choose color you would like
6. Carefully paint over the area you would like.
**Also try setting the layer style to Hue / Saturation for another effect**

Once you are done with either process, flatten the image then choose save as so you dont’ over write original file

One is to use the lasso tool to select the area you want to stay colored,
then Invert the selection,
then click Image|Adjustments|Desaturate (I am trying to write this from memory. The effect can be really awesome.

To add color that is not part of the image, Desaturate the whole image, select the Brush tool and set the Mode to Color. Select a color, then paint over the area you want to color.