Help with Logo

I'm looking for some help in a corporate logo.
The logo is fairly simple, mainly using letters and a couple vector circles.  I am new to this so any help/beginner advice would be appreciated on the following:
- I need to try to 'erase' a small part of one letter in the logo.  When I select the eraser it won't allow me to erase this small piece of the letter without rasterizing the letter first.  Is there a way to erase this small piece of letter without rasterizing it?
- If I build all of the letters and the small circles as vectors, and save the image as an .eps, will I be able to adjust the size of the logo overtop of images without having to worry about image quality (will it re-scale as an .eps automatically?)
If you can help provide me with some beginner advice it would be much appreciated!  Thanks.  I'm trying to better understand vector images and .eps files.

smackitsakic258 wrote:
 ...without rasterizing it?...
You're looking at the wrong software. Photoshop is primarily a raster image editor.
Logos are more easily designed in a primarily vector program like Illustrator. If you don't have Illustrator, try vector editors like Inkscape or Expression for free (or get the 30-day trial of Illustrator).

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