Some how I got it to work, I'm sure there are a number of ways but I found one...
Try this:
(on windows)
1)"ctrl+click" on the layer icon to make a selection of it.
2)Then goto "select-->modify-->smooth:(radius size)".
3)Then "select-->inverse".
4)Hit the "delete" key.
to set a stroke:
5)right click the layer, choose "blending options".
6)enable "stroke" and change the settings as you want.
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Yeehaa! Thanks Man!!! ;-)
The 'select' option is exactly what I was looking to do, you solved about 10 of my problems in one go!!
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