Firstly, we will need to use smoothing groups to make the mesh smooth. To do so select the polygon tool in the modifier (
) and select all the polygons in your model. Then, scroll down the Edit Polygon modifier until you get to the smoothing groups section depicted by a grid of 32 boxes. Press on the number 1 box, and you have now applied smoothing groups.
You can use different numbers to make different smoothing groups, where two different smoothing groups are together a crease is formed. For example, select the eye of the face, and apply smoothing group 2 to it. Make sure you take smoothing group 1 off though. As you can see, the eye now seems as if it is a separate element.
Another example is under the nose, I would like a bit of a crease between the forelip and nose. Select the polys underneath the nose and set them to smoothing group 3, and not 1. To make the crease go away where it meets the front of the nose, select all the faces that meet the group 3 and then reapply smoothing group 1 and KEEP group 3. As it has both smoothing groups it blends the two, but the Group 3 only ones underneath keep the crease at the base of the nose.
This is a valuable tool in creating quality characters and I will be using it quite a bit throughout the tutorial. So get to know it, play around with the possibilities of mixed smoothing groups and other things. It really is handy to know :)