Step 1: Open your image (I am using the Broncos logo for this example). Important to note on images and magic wand use. It cannot have a lot of varying colors and shades of colors as the magic wand will tend to pick up single colors only. Simplistic images with simplistic shapes and colors are the best images to use when extracting with the magic wand technique.
Step 2: Click on your magic wand tool. (Highlighted below). Now go to your image and click on one of the orange areas of the mane in the logo. Hold down shift and click the next orange area. Repeat until all orange areas have been selected (the eye requires two clicks, one on each side). Press CTRL+X to cut the selected area after all the orange has been selected. Press CTRL+V to paste the orange back in. Then grab your move tool and adjust the orange to fit back into the logo nicely. Repeat steps for the blue outline (dont forget the nose, ear and eye portions of blue). Repeat steps for white interior.
Step 3: You should have three layers: the blue outline, the orange mane and eye and the white interior. You can add filters, layer styles or whatever to each layer and modify the logo however you see fit.
Here's what I did.
PM me for the psd I made if you are having trouble.
Next: Tutorial 1b: The Magnetic Lasso Extraction