Vectorization (aka tracing) is the process of converting a raster image to a vector image. Vectormagic is an online engine that converts bitmap images to vector art – it’s an online auto-tracer.
You can currently convert your JPG, GIF, PNG, BMP and TIFF images to the following formats; EPS, SVG and PNG.
I played around with this tool myself, and the quality of it’s tracing is unbelievable. It’s a great tool worth checking out.