Problem with template filling.

I normally use the magicwand to select the edges of the garment, to fill it with fabric/color and to make alphachannels.

But they always turn out pixelated and with sharp edges like in this picture:
I'm using Chip's template.

I've tried many tolerance numbers, but it always turns ugly. Anyone got any advice? =/

I really hate the magic wand. It's such a crude tool. The problems you're having are very common with it.

I'd recommend forgetting all about the magic wand, and getting in the habit of using any of the other selection methods at your disposal. Here are a few:

1. Use any of the marquee/lasso tools to draw a selection line around the area you want to select.
   
   OR
   
   
   
2. Ctrl-click a layer's thumbnail on the Layers Palette to select everything on the layer. To add additional layers to the selection, hold down shift, and ctrl-click their thumbnails.
   
   This method preserves layer transparency values within the selection, which is nice for quickly generating alpha channels.
   
   OR
   
   
   
3. Use any of the path tools (the pen tool and the shape tools) to draw a path around the area you want to select, and then convert the path to a selection by ctrl-clicking its thumbnail on the Paths Palette. This gives you extremely clean selection lines, much more precisely than any other method.
   
   OR
   
   
   
4. To select by color more cleanly than the magic wand can, use the Select -> Color Range command. The options on the dialog are pretty self explanatory.
   
   OR
   
   
   
5. Learn to use channel masks. They're incredibly powerful for fast, accurate selection of desired image elements, especially when alpha channel creation is the end goal. Explaining channel masks is a big topic though, and I don't have the time or energy at this time of night to dive into it. Sorry. I'm sure I'll write something about it sooner or later though.

Those are a few things to get you started. As with every other task, there are literally hundreds of ways to make selections in Photoshop. Which one is best to use is largely dependent on the image you're working with, the specific elements you want to select, and what you intend to do with the selection once you've made it. As you get more experience with Photoshop, you'll gain an intuition for what works well when.

What is almost always constant though is that the magic wand is a blunt instrument. I'd recommend pretending it doesn't exist.

Thank you! The Ctrl-click a layer's thumbnail method worked great for me.

I was just about to post tonight about the same thing. I have made some bikini bottoms - with paths so I had nice lines and all, and then I was using the magic wand which gave me all the furry style edges (the same as in the pictures)...I thought that there must be an easier way!!!

And here it is. Thank you very much from a Photoshop noob!!

I'll be giving this a demo first thing tomorrow!!

Dont' forget, you can grow or shrink a selection.

After a selection is done, go to Select>Modify>Expand, or Select>Modify>Contract.
You can then key in how many pixels to grow or shrink a selection.

Champions!!!

Thanks very much guys!

This helps immensely..