NEED HELP! Image trace in AI

So you want to cut out around the black lettering?

Okay for that, your best bet is going to be using the AI (Live Trace) auto-trace function to turn it into a vector. There are a couple tutorials for how to use it here:

The two things to remember when you do it are:

  1. Make sure that Ignore White is checked. (If you don’t ignore white areas during the trace, it makes a lot of extra parts that have to be deleted.)
  2. After you have Expanded the Trace results, set the fill color to null, (no Fill), and set a stroke color to some uniform color.