You can just download the Pixeltools v2 extension for flash for free, which is way easier and less time consuming.
If you're scared of extensions or don't know how they work, this is indeed a nice tutorial. I use CS4, and pixeltools doesn't work in CS4, so this might come in handy. But I still have CS3, so I can just use CS3 with pixeltools to pixel easier.
I think you should've given a link to pixeltools or something.