The selection and isolation was done with the Pen tool. Sorry, I think there are easier ways to make selections. I really don't understand all the hype about the pen tool as a selection tool. But the Puppet tool is something else and what better time to use it except on the soccer girl.
No, the background is not a path selection filled with a color. And I could never figure out how to save my “object” as a custom shape. The Edit > Define Custom Shape was always grayed out. I also managed to create a path and then put text on the path. That could be very useful and I will continue to work on it. But then I went to copy and paste the “text on a path” I kept getting the path without the text — even after deleting the path! Oh, well.