I agree with most of the comments here, although I don't agree with some of the edits. I think Mark's edit is the best--least distraction, most realistic skin colors. I'd focus on how to avoid these problems in the future.
1. It looks like you used direct flash. If you did, I wouldn't, especially at close distances. Buy yourself a sto-fen, bounce the light, and use a bounce card like a demb flip-it to get direct light for catch lights. There are plenty of other flash modifiers, but this combination is cheap, easy to use, and generally works well. If you mount the Flip-It on the short end, you can even get portrait orientation without buying a bracket, just by rotating the flash head.
2. Avoid cluttered backgrounds if you can, and if you can't, try to use framing to lessen their impact. You shot at f 2.8, so there isn't much more you could do in that respect; the problem is that the clutter is just too close to the subject.
You can deal with cluttered backgrounds in post, but it is sometimes hard to avoid an artificial look, and it is hard (at least for me) to get a selection edge that works. The basic approach is to select everything that you want blurred, with a highly feathered edge that doesn't touch the person, and then add gaussian blur to taste.