1) Inkscape 0.46 will be used here. I believe even if
you are using another application you can get the basic
idea of vector tracing from this tutorial.

http://www.inkscape.org/

I'll make some updates here since 0.47 have been
out for a while. New and edited text is not proofread
so it probably has more typos and worse grammar.

Original form of the tutorial can be seen in the offline version:
http://www.megaupload.com/?d=N9JX8KHP
http://rapidshare.com/files/270555464/Guide.rar
or here:
http://vectoringanime.99k.org/Tutorial.htm

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2) I'll be using lots of shortcuts here. All tools
can still be found from dropdown menus(file,edit,view,etc).

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3) I don't expect you to have experience with Inkscape,
but I'm expecting you not to be a total idiot who can't figure
little things out by yourself.

It might be helpful be familarize yourself with a few of inkscape's tools. 
If you are completely new to Inkscape you might
want to go and play around a bit with Inkscape. This is not
100% necessary but it should help you a bit.

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4) There are many ways to do things in Inkscape. Feel free to do
them the way you prefer.

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5) Also feel free to test other tools and options which I don't mention here.
You can always undo(ctrl+z) your way to back.

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6) You can always check how I have done things from this svg-file.
Note that you can't see the source picture (model.png) if you don't reimport it.

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7) If you have problems following this tuotorial because of your
Inkscape is not in english you can do following:

Open notepad and write down following lines:

@set LANG=en_EN
@start inkscape.exe

Then save the file to your Inkscapes installation directory
with name "inkscape.bat".

When you open your Inkscape with this bat-file it should be
in english. If you open Inkscape with inkscape.exe it will
be in language it was before.

If this is not working or you are not using Windows
check this link.

Inkscape 0.47 and newer versions should have option to change
language from Inkscape preferences(ctrl+shift+p).

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