VectorMagic is a great new service that is available on-line for free that allows you to create vector art work from non-vector images. If you don't know what this means, it basically takes pixelated images (such as those in jpeg, gif, png formats) and converts them into a vector graphics which work on lines, not pixels. The great advantage of vector formats is that you can scale the image up or down and not loose any clarity.

Vectorization of images works best on images that can be easily decsribed by lines; things such as logos and drawings, it does not work so well on things like photographs. So if you have a logo you've been wanting to scale but you haven't been happy with the results, check out VectorMagic.