The best way to produce high quality Photoshop clipping path is by using the hand tool. In fact, it is the easiest and the quickest way to create a good cut out. Here is how to go about it.
In the Photoshop tools palette, click and hold on to the Pen tool to see the subsidiary tool. Here, -Delete Anchor Point Tool, +Add Anchor Point Tool, and Convert Point Tool will be the ones that you will be using.
Trace the image that need to be cut out so that the path is nearly at the middle of anti-aliasing. Anti-aliasing happens when the computer blends the edges of an image by making use of the average of background color and the object color to reduce the difference between them. After tracing around the object, from the paths submenu, select Save Path and then click on Clipping Path. Also, make sure that the image is CMYK and 300 DPI actual size; then save the image as Photoshop EPS file and places it in InDesign.
To get the best on-screen redraw, select View/Display Performance/High Quality Display option. You will notice that now the image has an accurate, smooth edge with less ghosting. The image may have a haze around it, which is one of the limitations of the Photoshop clipping path service.
Softening Cutout Edges
Go back to the image that you have cut out in Photoshop. In the paths palette, hold on to the command key, and click on the saved path. This will select the path. To create a new layer containing cut out of the image, select Layer/New/Layer via Copy option. Select the background layer and create a new layer from the bottom of the Layers window. Use white or the color of the final background needed to fill this layer. Select the layer having the cutout, change the pixel to 1 and click OK.
To the cut out layer, apply Add layer Mask feature found at the bottom of the Layers palette. This will soften the object to blend it better with the background. Now save the image as Photoshop EPS file, and if you plan to do more alterations to the image later, then save it as Photoshop PSD file.
When you place the image in Quark or InDesign, you will notice that the haze is removed completely or is at least reduced to a greater extent.