Step 1

We will continue using the mirror modifier. Select the model by Right
clicking, press TAB to enter into edit mode.

Step 2
Make sure that you have either Vertex or Edge Selected in the Mesh
Select Mode. Press Ctrl+Tab to choose or click on the button in the
3D view's menu bar. Select the row of vertices on the lower neck
using Alt+Right click, or hold Shift and then Right Click to select
multiple edges manually.

Press Ctrl+E and select 'Mark Seam'. The seams are the line where
the mesh gets 'unstitched'. Press A to deselect the vertices.
Step 3
Deselected any vertices by pressing the A key. Move your mouse over
the shoulder pad and press L while hovering over it. We see that the
group of connected vertices are selected and nothing else. Press H to
hide them, as we want them out of view for a while. Also remember to
save your file often.
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Step 4
Select the edge loop on shoulder as shown in the image below using
Alt+Right Click. Press Ctrl+E and mark them as a seam.
Step 5
Similarly Mark the edge loop at the center of the wrist.
Step 6
Now select all the vertices/edges of the inner arm from the shoulder
seam to the wrist seam. Press Ctrl+E and click on Mark Seam.
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Step 7
Select the edges loop at the end of the glove. Press Ctrl+E to Mark
them as a Seam.
Step 8
Select the lower edges of the hand so that the seam divides the hand
into two parts. Do not select the edges on the back side, as shown in
the image. This will keep the hand in one piece. You will understand
this later when we unwrap it. Press Ctrl+E again to mark them as a
seam.
Step 9
Select the bottom faces of the spikes on the glove and press Del to
delete them. The bottom faces are extras and can be deleted so save
the poly count.
Select the edges of the spike and mark them as seams.
Step 10
We will now create a seam to separate the pants and upper body.
Select the loop around the waist as shown in the image below, and
mark it as a seam.
Step 11
Similarly make a seam around the ankles. This way we will be able to
separate the shoe.
Step 12
Mark the in-between edges of the legs as a seam (just like a pair of
trousers are stitched.)
Step 13
We will also separate the sole with a seam. Now we have all the
necessary seams marked.
You will notice that we didn't mark the side corner edges (see the
following image) as we have in our clothes. This is because we
already have a seam on the other side - the center, as the mesh is in
half. The other half is generated by the mirror modifier.

We can take advantage of this mirror modifier for UV unwrapping and

texture painting for Symmetrical models with a symmetrical texture.
Also Try to practice UV unwrapping different basic objects like
cylinders, etc. to understand how and where to mark seams. This is
generally gained through experience and problem solving.
Step 14
Press Alt+H to unhide the shoulder pads. We don't need to mark
seams for the shoulder pads, as they are already an open group.
Press Ctrl+TAB and select Face select mode. Mouse over any of the
faces on the leg and press 'L'. You will see that only the group
separated by the seam is selected. This works only with Face select
mode.

If you press 'L' to select a group in Vertices select mode, all connected
vertices will be selected despite any of the seams. Hover over the
head and press 'L' again to check. If you get any extra faces selected,
then the seams are not properly closed. So recheck them from all
views. Move you mouse over the selected group and press SHIFT+L
to deselect it, or press A to deselect/select all.
Step 15
Move the mouse over the 3D view's top right corner and drag to split
the view into two.
Click on the left most icon, in the new 3D view's Header (located at
the bottom of the view), to bring out the Display Type Menu, and then
select UV/Image Editor.
Step 16
Now we will start unwrapping the mesh. We can do this either by
selecting the groups individually and then unwrapping them, or we can
unwrap the whole mesh at once. We will practice both. Press A to
deselect any vertices or faces. Press Ctrl+Tab and select Face select
mode. Move the mouse over the head and then press 'L' to select only
the head group.
Step 17
With the head group selected, press 'U' to bring up the UV Mapping
Menu, and Select 'Unwrap'.
You will see that the Head (half/side) is unwrapped on the UV area in
the right viewport. We see only one side of the head unwrapped,
because the other side (right) is being generated by the mirror
modifier. Just like editing the points on one side of the mesh, is
mirrored on the other side, similarly, painting on one side will also be
mirrored on the right side.
Step 18
You can go ahead unwrapping individual groups separately like this,
or you can unwrap the whole mesh at once. Press A to select all the
faces of the mesh and then press U to bring up the Unwrap menu, and
then click on 'Unwrap' to unwrap the whole body.
Step 19
With all the faces selected in the 3D view, re-arrange all the groups or
'islands' in such a way that they perfectly fit the UV Area. Only
selected faces will appear in the UV editor, so make sure you
have all the faces / points selected in the 3D view. Commands are as
follows -

 Select a group - Mouse over and press 'L'

 Select vertices - 'C' for cursor, 'B' for box select. Right click to
select one point, Hold Shift and then Right click for multiple
selections.
 Alt+Right Click for Loop select.
 Toggle Select all / Deselect all = 'A'
 Move = 'G'
 Scale = 'S'
 Rotate = 'R'
 Zoom in / Zoom out = Mouse wheel.
 Pan = Shift+Middle mouse button + drag.
 to align vertices = W

To maximize the UV Editor, move the mouse over the UV Editor and
press 'Ctrl+Up Arrow'. Press Ctrl+Up arrow to toggle back.
I like to place the head on the top left. Adjust, align, rotate and move
the vertices or islands.
Step 20
Optional: You can further divide the leg into two groups by marking a
seam on the upper portion of the knee. I am doing this as we have a
clear distinction between the dress and color, above and below the
knee. This will be helpful while coloring. You can align the row of
vertices by selecting them and pressing W.
Step 21
So far, this method is useful for objects with symmetrical textures or
design. Now we will practice for a non-symmetrical design, as we
have an a-symmetrical design on the chest.
First make a backup of the object with the mirror modifier on. Press
TAB to get out of object mode. Select the object using Right click and
press Shift+D to make a duplicate. Drag the mouse far away and Left
click to confirm. You can continue working on either model. Select one
and in its Mirror modifier, click on the Apply button. Save your file.
As you can see we have our UV Map intact, but we can see only one
hand, leg etc. even after applying the modifier. This is because the
UVs for the other side are lying directly on top of the original side.

Step 22
Now select the side vertices as shown in the image below, and mark
them as a seam.
Step 23
Select the edges / vertices on the shoulder as well (just like a t-shirt)
and mark them as a seam.
Step 24
You can mark the other side of the chest as a seam as well. Or leave
it and see what happens while unwrapping.
Step 25
With Face Select mode (press Ctrl+TAB) press L while hovering the
mouse over the front part of the chest. You will see that only that
group is selected. If not, then there is some mistake in the marking of
the seams. Press U and then Unwrap it.
Do the same for the back if you have made it a separate group. I have
selected and rotated the UVs.
Step 26
Now select all the vertices / faces of the mesh with the A key, and you
will see all the UV 'islands' in the UV editor.
Adjust the layout once again. To select a UV island, select any of the
vertices using right click or the B or C key, and then press Ctrl+L to
select the connecting points or the UV group.
Step 27
We are now ready to start Texturing. In the UV Editor click on New
Image. We will use the default dimensions of 1024X1024.
Step 28
In the 3D view, press TAB again to get out of Edit mode, and add a
plane below the model. This plane will prevent light from coming up
from the bottom, and help achieve nice shades to bake the AO data
(in the next step.)
There should be some distance in between the model and plane.
Step 29
Now we will bake the Ambient Occlusion data onto the image. This will
add shadow information into the image, giving a nice effect. Click on
the 'World button' on the Properties Panel. In the Gather panel, turn
on 'Pixel Cache', pull the 'Correction value up to 1 and switch to
'Approximate'.
Step 30
Right click on the Character model to select it. Open up the Render
Panel in the property window. Scroll Down to the BAKE Panel. Select
Bake mode to Ambient Occlusion. Increase the Margin to 6, and finally
hit the Bake button. In a few seconds, the image will be updated. In
the 3D View, Press Alt+Z to view the model with the texture applied.
Use Alt+Z again to toggle back to the shaded view.
Step 31
Save the image, preferably in PNG format.
Step 32
With the model selected, Press TAB to enter into Edit mode. Select all
vertices with the A key. In the UV Editor, click on the UV Menu and
select 'Export UV Layout'.
Select the PNG Format and decrease the 'Fill Opacity' to 0.00.
Step 33
Open the image with the Baked AO data, in your favorite image editor.
In a new layer on top, add the UV Layout we exported in step 24.
Step 34
Create a new layer in between the Wire and AO layer. This will be the
layer on which you can paint the texture. You can create more layers
for painting, but keep them in between the Wire and AO Layers.
Step 35
Paint the texture using the Wire frame as a guideline. Set the paint
layer to Multiply, Hard Light or Overlay. You can experiment with the
transparency levels. We see that the AO layer automatically gives nice
shades to the overall texture. When done, Save the image in .psd
format. Turn off the layer visibility for the Wire layer and export it
in .png format.
Step 36
Now back to Blender. In Edit mode, with all the vertices selected, open
your exported PNG image, in the UV Editor.
If you don't see the texture on the model in the 3D view, Press Alt+Z
to enable Texture View Mode.
Step 37
In the Materials Panel, scroll down to Options, and check on Face
Textures.
Press TAB if you are still in the edit mode. The model is now ready for
export or use within blender.