Placeing PSDs in AIs or EPSs

Hi guys. I have been contracted by a customer to remake a logo of theirs. Like always it should be a vector file so they can scale it and print it resolution independent. The problem is their logo includes some effects (pillow embossed text and graphics) that are much easier done in Photoshop. So I'm left with the option of manually creating highlights and shadows (drawing a line then using gaussien blur)in illustrator to imitate the  photoshop pillow emboss.  I was wondering if I placed a photoshop image in illustrator and saved it as an eps or ai if screen printers and other printers that require a vector file be able to use it or if that wouldn't help at all. I also know that there is a way to save photoshop eps. However when I try to do that with this logo that option is not available. Any advice? I am using Photoshop and Illustrator cs5 on mac OS 10.6.8

Like always it should be a vector file
Yes, and placing a PSD in Illustrator and saving as EPS or AI doesn't magically turn it into vectors. Neither does saving it as a Photoshop EPS.
If their logo can't be reproduced in one color, it isn't a logo.
I know you didn't design it, but whoever did design it should have delivered a complete package of vector graphics that includes a single color version, along with whatever multi-color versions they wanted, and then perhaps, (but not as a rule), one or more stylized versions with raster-only effects like blurs, shadows, shading, etc. If all they got was an effect-laden raster image, they got taken. And now they'll have to pay again to have someone, (you?), recreate a flat version in vectors as should have been done in the first place.
If you're preparing the graphic for output by a provider who requires vectors, forget the pillow emboss.

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