I am using Illustrator CS3 on Windows XP SP3, 3gb of RAM

I am making an ad for a clothing botique that constantly rotates logos every ad (every month) based on whats popular at the time.

There are competing publications that also make ads for this place and of course they never want to give up the editable files.

I have run across a file or 2 and notice all the logos are vectorized. They are perfectly done too.. results that I can't fathom how they came by...

I have given Live Trace a ton of my time and I cannot seem to figure out the best way to get these logos vectorized.

The reason I need them vectorized is so I don't have backgrounds, and they all blend into a black background the same.

Here is a logo that I need to vector that seems particularly daunting
<http://i48.photobucket.com/albums/f216/annick_eve/draven_logo.gif>

notice the jaggedy outline.. I've seen other artist work come across my desk that was vectorized exactly like this.

How are they doing it?? Don't tell me its the pen tool, because on this logo in particular (on the link) I cannot believe its true!