Brief Explanation: Raster vs. Vector
Raster is purely Pixel based, simply meaning that an image is created by color values assigned to it on a pixel by pixel basis.
(most commonly photographs and scanned images).
Vector is object(shape) based bound together by anchor points to form a solid object (if those anchor points join/connect).
These Anchor Points follow each other in a dot-by-dot or line-by-line formation along a Path.
Benefits:
The true benefit of using vector shapes and paths is that it is not limited to resolution, unlike raster, no matter the scaling direction, it still maintains quality and sharpness.
Vector Shapes can also be reshaped and stylized. However, most filters require that the shape be rasterized before proceeding.(So always backup the original shape before using filters!.)
Number one Tool is patience, along with practice. Don't expect to get it on the first try, nor the second , or even the third. I sure didn't.
The main tools are located on the Toolbar, respectively, the 'Pen Tool (P)', the 'Path Selection Tool (A) & the 'Shape Tools (U)'.
Live Trace is a simple tool to create a quick vector
here is example of what kind of vector live trace can produce
Vector File Extensions
Extension File Application
.86v TI-86 vector file
.ai Adobe Illustrator graphics
.ait Adobe Illustrator template
.art Adobe Illustrator graphics
.cdl SignLab vector graphic file
.cdr CorelDRAW vector image
.cdrw Corel Draw file
.cdt CorelDRAW Template
.cgm Computer graphics metafile
.cht Harvard Graphics vector file
.cit SeeYou vector maps
.csh Adobe Photoshop shape
.csl Corel symbol library
.ctn Cadterns Sloper File
.ddoc Apple MacDraw vector graphic file
.dlg Digital Line Graph vector image
.do Digital Line Graph optional vector data
.drw Vector file
.dvg GraphicsWorks vector drawing
.dxb AutoCAD drawing exchange format
.emb Orchida Embroidery System embroidery pattern
.fh image file
.fh10 Adobe FreeHand 10 drawing file
.gcd Generic CADD Drawing format (vector)
.gem Ventura Publisher GEM vector picture
.gl2 HP Graphics Language plotter file
.hpg Vector image (HP Graphics Language plotter file)
.hpgl Hewlett Packard Graphics Language plot file
.ima EGO – Chart – Autumn Mirage vector graphics
.md Mayura Draw vector drawing file
.mvg ImageMagick proprietary vector graphics format
.odg OpenOffice Draw graphic file
.pat Corel vector pattern
.pat Pattern Maker Cross-Stitch Pattern File
.pat Polygon Attribute Table File
.pat Corel Paint Shop Pro Pattern Image File
.pat PCStitch Pattern File
.pat Smash Simulator Test Pattern File
.pat Cadterns Sloper File
.pat Orchida Embroidery System File
.pct Apple Macintosh QuickDraw/PICT bitmap graphics format
.pif Vector image GDF format
.pix Image Systems vector
.pix Inset Systems raster & vector format
.plo HP Graphics Language plotter file
.plot Vector graphics
.plt Autodesk AutoCAD HPGL vector graphic plotter file
.ps Adobe PostScript file
.sdw Amidraw vector image
.sdw WordPro drawing
.slddwg SolidWorks drawing 2D vector graphics file
.sp SignPlot output format
.spa FutureSplash Movie (Adobe Flash)
.svf Simple Vector Format
.svg XML based vector graphics format
.sxd StarOffice draw file
.tdr Top Draw vector graphic file
.vec Daylon Vectre vector graphic
.wmf Windows metafile
.xar Corel Xara drawing
.xar Xara X vector drawing
Raster File Extensions
.psd Adobe Photoshop
.jpg JPEG Raster File Format
.gif GIF Transparent File
.PNG Portable Network Graphic Transparent File Format
Oh yea lets just get the great debate out of the way
" PhotoShop can't create true vectors " Yes it can
anyone else who does " vector work " post up some examples and help out some of the people new to vectors