http://www.photoshopbuddy.net/teddy.html

That is the tutorial I'm doing and I'm on Photoshop 7.

Problem 1
In step 2, you see how they press CTRL + T, then right click and click warp? I'm not getting the warp thing, but I am getting "Distort, Skew, etc". If there's another way to arc the shape please let me know.

Problem 2
Where the stomach is being made, and it says in one of those steps "Adjust nodes to get the shape as shown." I'm having a VERY difficult time getting that shape. I don't think I can get it all. Can someone tell me what I'd have to do to get a similar shape?

Problem 3
I don't know how to use the pen tool at all. So how would I go about making the arms? I'm not too worried about the lips of the bear.

All help is appreciated!