Coverting photoshop file into an illustrator file

Is it possible to convert a photoshop file into an illustrator file - I am using CS3.
My client has sent me a logo which is a small photoshop image of the logotype logo on a black background at 300dpi. The text is 3D and has a gold gradient on one section and silver gradient on another section.
Originally the logo was created by an animator for a film - the animator says he cannot provide a vector file
The client does not want to remake the logo from scratch as the gradients and 3d effects would be different.
I now need to have a vector file for a large print job - can I take the photoshop image - place it into an illustrator file and save as an illustrator file? Is there a better way to do this?
I have tried cutting out the text area of the logo but it is still a bit scratchy round the edges so not really very useful.
Thanks for you help
Regards - Brian

The client made the mistake of not having the logo properly made as a vector in the first place. He needs to accept that fact and let the logo be properly created now. It's easy to turn a vector image into a raster (Photoshop) image, but going the other direction is generally not possible without recreating it from scratch. Although the Live Trace feature in Illustrator converts rasters to vectors, you probably won't like the result, and a logo needs to be be properly constructed, not knocked out by Live Trace.

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