I'm leaving the LC business world... which really only means I'm no longer guaranteeing any degree of customer service. But I'll definitely still be contributing fun things that interest me or serve my own interests.
So, re. vectorizing - when you digitize something you can store it in two different ways on a computer:
One way is as a conventional picture, which is just a big square of pixels with a color value saved for each pixel. The computer only sees this as a big square of color data, but your eyes see it as... well... as whatever the picture is of. This is called a "raster" graphic, e.g. a .bmp, .jpg, .gif, etc etc.
The other way is called a vector graphic. Instead of just a big square of pixels and color data, vector graphics are composed of lines and paths that define the boundary of every shape or region of color in an image. These vector graphics are commonly found as a .svg, .ai, .dxf, .eps, etc.
You may be thinking that that sounds like a pretty subtle difference, but really its HUGE. For one, you can zoom in infinitely on a vector graphic without ever losing any quality (aka it never looks "pixelated"). But the big difference is that a vector graphic is stored with real coordinates; that is, when you print a vector graphic the file contains information that tells the printer exactly how many inches across it should be. Whereas when you print a raster graphic there are all kinds of assumptions going on; how big is a pixel when you print it? No one knows: its different on every computer, printer, and paper size.
Raster to vector conversion is one of those Big Deals in the computing world today. The problem boils down to - if you had a picture of something, how would you get a computer to pick out all the straight lines and arcs in a photo? As smart as computers are, doing this reliably is very very hard even today.
There is no real substitute today for someone just carefully tracing the source graphic into vector format. There are a number of automatic procedures, and indeed I wrote one of my own for knoobs.com, but ultimately if you want it done right a human hand is the only thing that REALLY works.