Can anyone help me with raster to vector and transparent background?

In Photoshop CS3 I created a three dimensional logo (beveled, drop shadow, etc.) and want to covert it to an Illustrator vector file (and then to an EPS) with no white background. When I "open" the flattened .psd file (that has no background) in Illustrator it does come in without a background but when I convert it to a vector file via "Live Trace" it adds a white background whether I keep the drop shadow or not. How do I make a vector file and save it as an EPS in order to import it into an inDesign layout without a white background showing up? I followed a couple of videos on YouTube but they were always demonstrated with a flat, one or two color logo. This logo will be used with and without a drop shadow ... can you even vector a drop shadow? Any help or tutorials you can point me to would be greatly appreciated.

If your intent was to create a vector logo, you should have created it in illustrator not photoshop. That said, if it is a simple logo, live trace can be used, but it can also generate a lot of unwanted vector shapes that normally are not needed. If there is any complexity to your logo use the pen tool to trace instead of live trace. You can then control how the shapes are created.
But to answer your question if you open the properties panel for live trace you will find a check box for removing the white background.

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