Designing my 1st Jersey need help plz!

[Devilish]

Hello
I am a fast learner and a good listener and i need a little help.
I am doing my first jersey for live 08.
I wanted to know how to create one using just the template .
But how do you guy get the neck and arm holes ?I see to the right in photoshop a layer that has them but the tutorial isnt using that.Am i going all about it wrong or i need to make the arm holes and neckholes by cutting in PS Cs5?