Raster vs Vector

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I prefer using the vector tools in Photoshop when possible. Then use other layers for raster. That way you can scale the file up or down as needed without losing definition (except on the raster layers), and the file size remains smaller than just using raster.

The ad agency I work for occasionally needs me to recreate logos that we get from clients in a non-printable resolution. I scan them into Photoshop, use the vector tools to recreate them, then if we need an Illustrator version of the logo I export my paths.