First I put the background image( the grunge wall) and the lace image...

With a pen tool, I traced out the outline of the lady... I also saved the path for use later...

After cutting out the lady... I filled out the transparent area in the layer with white...

Now going to Image->Adjustments->Posterize and choosing a value of 3 for the lady layer...

Then using the saved path of the lady outline... Stroked it with a black brush of 3 px( 2 times)... I also removed the white part outside the outline...

And I added man holding a spray can to the image above the lady...

Now I set the blend of the man layer to multiply... Then I painted white beneath his layer to make parts of his body visible...

I also edited his shadow a bit( was to lazy to cutout the whole image and make a shadow)

Made an Hue/Sat adj. layer with the setting:
Reds: H: +20 S: 0 L: 0
Blues: H: 0 S: -100 L: 0
I didn't made any changes to master...

And also made a brightness/contrast adj. layer with setting:
Brightness: -30 Contrast: +10

Now I added graffiti into it...

The graffiti encircled in red are real graffiti pics taken from sxc.hu...

The rejoice layer is set to darken... Skull and Love Pain is set to multiply and 75% opacity...

The graffiti encircled in green are text...

"No Entry" is written with a 4YEOstamp 24 px font and "random" is written with Ahlambra 24 px font... Also with a layer style of strikeout 3 px... The layers are at 75% opacity...

The graffiti encircled in blue is a custom shape with 75% opacity...

The lace and the cross n naught graffiti are done by me with the pen tool... Both layers at the opacity 75%...

And lastly I added a photo filter of the color #ec8a00 with a 25% density....

That's all...