7089 Vectorize JPG into outline

I have a JPEG image that needs to be vectorized. By the term "vectorized" I mean that I want that JPEG file to be in an outline/ grid ( I am not sure of exact terminology here). Basically, if this JPEG image is converted into an outline form, I can use it with my sign software for cutting vinyl. I would prefer to have the finished project in .ai or .eps Illustrator is preferred. Corel Draw would work fine also. If I have not explained myself clearly please ask!! Thanks.