Vectormagic is a website that provide service for converts bitmap images to vector images – it’s an online auto-tracer. Just upload your image and they will vectorize it for you. Vector art is useful because it allows you to scale an image without making it blurry or pixelated. Today the vector image/art is very popular. The site is currently tuned for tracing logos and photos.
Fileformats supported :
Input: JPG, GIF, PNG, BMP, TIFF
Output: EPS, SVG, PNG
Vectorization (aka tracing) is the process of converting a raster image to a vector image. Raster images are pixel-based, whereas vector images are represented by geometric shapes such as lines, circles and curves.
They give vectorizing comparison using  between VectorMagic, Adobe Live Trace and Corel PowerTRACE. It seems Vectormagic more neat and accurate 
yeah and it’s free dude ! …
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