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I just watched the Workshop DVD with Iain McCaig, and he mentions that you can change the brush to 'color' in the brush options but I can't find anything of the sort. He took a tonal drawing and said this way you can paint with a new color and preserve the tones underneath - This doesn't sound like just an overlay layer or anything... If anyone knows about this, can you help me out?
I haven't seen the DVD but he's probably talking about the brush mode. You'll find the option at the top left of Photoshop near where you change the size. It's a drop down menu that is defaulted to normal when you have your brush selected. You could also create a new layer and change it's mode to color and paint on it for a similar effect.