Some Model Magic examples.
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To create the style of ghost head like the one shown above, you must first obtain the following materials: Styro wig head, ping-pong balls, monster teeth(those cheap rubbery ones that supposedly fit over your own teeth), paper towels, white glue, white and fluorescent yellow spraypaint and black acrylic paint. The following tool are also needed: Hot glue gun, coping or hack saw, soldering iron.

Lay the wig head on a flat surface face up. Cut straight down from the lips to a depth equivalent to the top of the neck. Starting from the neck, cut across from the chin to the first cut, cutting away the lower mouth and chin area. Glue the chin back on lower down to give the head a open mouth look. (You might want to carve away some of the chin piece before gluing down. Check for looks) Cut away the backs of the teeth pieces and glue the remaining teeth pieces in place.

Using the hot soldering iron, melt holes in the eye sockets of the wig head large enough to fit the ping pong balls into. Do this step outside, as the fumes are not good for you. Glue the ping pong balls into the eye sockets.

Into a bowl, blend together a 50/50 mix of white glue and water. Tear paper towels into two to three inch wide strips. Dip the paper towels into the glue mix and squeeze off the excess. Lay the pieces onto the wig head. Do not smooth too much as texture is important. You may create facial details using the dipped towels balled up. Cover the entire wig head with the paper towels. Let dry.

Spray the entire head with white spray paint. Let the white paint dry, then brush in the shadows with the black acrylic. (For those of you with airbrushes, you can achieve smoother shadows airbrushing them on.) When the black paint has fully dried, spray the entire head with the fluorescent paint. Your ghost head is done.

Additional tips: Instead of building up facial features with the paper towels, you can first sculpt the face with Model Magic before covering the head with the paper towel mache. Also, don't forget details like hats & hair. To keep your ghost heads from blowing over in the wind outside, pound a tent stake halfway into the ground and position the center hole of the wig head over the stake.