4) TraceIt Bitmap Tracer
TraceIT is a program for raster to vector conversion. Based on original algorithms, TraceIT provides the maximum speed for bitmap tracing. It can operate with a wide range of raster formats including almost every bitmap type such as BMP, GIF, TIF, JPG and PSD. In addition to standard bitmap images, TraceIT can trace video files in AVI, MOV or MPEG formats. The program can extract some exact frames from a video file, trace a range of frames or a whole file. Requires license file from company to work. Price: USD $595 if you do not have an LD2000 system. You can get LD2000 Intro system for less than $2000, which comes with show creation tools, over 60 laser shows and over 100,000 clipart laser frames. TraceIT is free if you are a user of LD2000 software.
http://www.pangolin.com/LA_Studio/TraceIT.htm

3) CorelDRAW
This application needs no introduction as CorelDRAW has been around for many years. The CorelDRAW DESIGNER Technical Suite 12 consists of illustration and layout tools for creating and editing high-end graphics and documentation. The suite includes Corel DESIGNER 12, Corel PHOTO-PAINT 12, CorelTRACE and Corel CAPTURE. CorelDRAW Graphics Suite X3, built on Corel DESIGNER Technical Suite 12, only includes PowerTRACE for bitmap-to-vector tracing and and PHOTO-PAINT for photo-editing.
Price: USD $699 (CorelDESIGNER Technical Suite 12), USD $399 (CorelDRAW Graphics Suite X3)
http://www.corel.com/

2) Illustrator How-To: Turn Bitmap Images into Vector Art
Transforming the jagged edges of raster images into the smooth curves of vector art isn't hard to do using Adobe Illustrator's Live Trace feature in Creative Suite 2. But the end result can look simplistic. For more sophisticated images, you'll need additional help from Illustrator's path-editing tools and from your image editing application. Here's what you need to do.
http://www.creativepro.com/story/feature/... (older versions of Illustrator)
http://www.adobe.com/uk/products/illustrator/... [pdf file]

1) Illustrator CS2 Tracing tutorials
This is a tutorial where you learn how to create those nice looking traced images like the one to your right. While a lot of software is available that does this work for you — such as Flash with its bitmap tracing option — I'm sure you agree with me that there's nothing like the real thing baby, so let's get on with it and get some skills.
http://www.sitepoint.com/blogs/...
http://graphicssoft.about.com/od/...