Originally Posted by derek lapp illustrator's trace function is pretty bad as far as my experience goes.

Ditto that! Yikes Illy is horrible at tracing. Streamline was a hundred times better and they nixed it to build the trace function in Illy. Bad, bad move.

Originally Posted by derek lapp you're best saving as an eps directly out of the vector program. it's going to be a raster image in photoshop no matter what you do.

Okay, I hope people read carefully. Photoshop is NOT a vector-based program. You CANNOT create vectors with it. The .eps saving option in Photoshop is to allow designers to set graphics as monotone, duotone, tritone, etc. for spot color printing.

Illustrator and Freehand are the best programs on the market for vector graphics. If you want vectors, use one of those. I personally prefer Illy over Freehand, but use whatever you work best with.