is it because i didn’t do any further unwrapping? (when i unwrapped first, it came out looking perfect like in the image link above - so i wasn’t sure if i had to do any pinning, then unwrapping, then merging seams…).
Is there a reason that you wish not to have red dots? you can change them to black dots in photoshop so that they look the same, otherwise i don’t think they negatively effect the outputted file in any other way.
you are supposed to paint over this image, or better, to paint over in a different layer. Then you turn off the layer containing the edges/vertices and only keep the painted map. Export to an image format usable with Blender and then use this newly painted image as the UVmap for your model -> the painting will appear onto the surface object if you activate the TexFace button in the Material buttons.