Here's a tutorial that I have on my website, Thought I'd post it here as well. If you want a more high res file it's on my website.
I don't state my brush setting on this tutorial because I have them stated in another one, but I'll tell them to you now(photoshop 7.0)
Make sure you go to you BRUSH PRESETS and check "Other Dynamics". then click on other dynamics to get more options. Make sure that "opacity Jitter" is set to Pen pressure. This will allow your tablet to have the soft pressure touch that you want it to have. Also I set my brushes with a little "shape dynamics". "minimum Diameter" set to about 60% to 100%.
For smooth blends, sets your brush hardness all the way to 0% hardness, and move the spacing to 30%. this will give you a nice smooth blend brush.