I'm a little late in jumping into this discussion (haven't been online in months),but I'll throw in a quick trace tutorial in case anybody's interested:
Tracing is pretty easy in CS... just don't automatically hit the "Live Trace" button because it will use a default that probably won't be as clean or precise. If you are working with a clean black & white or grayscale image, click on the little arrow to the right of Live Trace, and use the Black & White logo setting. Then hit the Expand button to release all of the paths. The result will be your black logo a white box around the bounding box of the image, but you can delete that easily using the direct selection tool (the white arrow on your tool box).
Live trace will also have created white objects within all of the 'non-black' areas of your logo, so if you want to delete all of those, select one of them using the direct selection tool, then go to the Select pull-down menu, and go to Same>fill color -- then you can delete them. (By the way, once you've used a "select same..." command, the keyboard shortcut to re-use it is F6).
If you plan on filling those white spaces with color, ungroup the entire drawing so you can work with the individual pieces easier.
Hope this is useful to somebody out there...:nervous: