Our starting image...

Step One!
Open up Photoshop. You want to open your image. Click on the pen
tool.
You want your pen settings to look like this.
Now trace your image were you want the dotted line to be.
By the end of step one you'll have an image like this.

Step Two!
Set up your dot settings now.
You want a simple brush around 5 px.
You can change it for the image or brush type. 5 just works best for me
and the plain circle brush.
Now for the tricky part. Try to match my
settings. If your using a different brush type or size then just toy
around a bit until you get the line to resemble mine.

Step Three!
Now to get on the road. Create a new layer (Shift+Ctrl+N)
Now click
on paths.
You're going to double click on your 'work path' and go
down to stroke path. You want it set to Brush.
Are you here
yet?
Good! If not trying reading again to see where you got
lost.
Step Four!
Now we're going to click back on our pen
tool. Right-click the pen line we made earlier and delete it.
When
all this is over we are left with a pretty line out lining Mr.
Vengeance.