1. Right Click and save this link to a picture.  Oct_Face
  2. Go back to Blender with your Octopus. 
  3. You should already of added a material for your Octopus.  If you have not colored it Press the F5 key and color the octopus.
  4. Click the textures button. 
  5. Click Add New. 
  6. On the Texture Type click Image. 
  7. Click Load. 
  8. Navigate to your file by clicking the 2 arrows. 
  9. When you find your image click select image. 
  10. Change your Map Image pane to the following. 
  11. Go back to materials. 
  12. In the Map Input window pane you are going to have to make some changes.
  13. Go to the material view of your project. 
  14. Place your mouse in this window and press Shift P. 
  15. Go to the Map Input Window Pane. 
  16. Change from Flat to Tube. 
  17. Now you are going to have to find the right settings for ofs and size.  (ofs means where the face is going to show up.  size means the size of the picture.)
  18. Here is what I came up with.  What I did may be different than what you need. 

Here is my final product.  I put a Nike on top of the octopus.  I also gave the creature some socks.