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I have this image:

enter image description here

It's only 19ppi.

I want to create a vector from it so that it can scale up up to 11 square inches and retain it's quality.

How can I make Illustrator do this? I was trying to use the Live Trace. But I don't think I'm setting the properties correctly. It either overly smooths it or it leaves the edges as stepped and jagged.

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For live trace, it may be better to scale it up to larger pixel dimensions (2-3x), place it, and then trace it. This way you provide more data for the trace.

Quality loss from over scaling the raster image is OK in this case because you will be using it as an intermediary step to the vector.

IGNORE PPI, the only thing that matters is pixel dimension.

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Mostly by hand. Or combination of both. Keep the pix on one layer as guide, trace it on other (medium smooth maybe) for the little spec details and discard large, big chunks that can drawn over by hand. And the big parts draw over by hand. Of course this hinges on the effort being justifiable.

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