Problem saving PSD file in Illustrator

I have several files that I created in PSCS3. They are all simple, with two or three flat colors, one color per layer, no effects, shadows, etc. My client is having these printed in China using a type of silk screening process on mug-like items. The printer in China has asked me to resend the files in Illustrator. I am not familiar with Illustrator, but do own a copy of CS3, so I opened my PS file, dragged it to the AI icon and saved it as a layered AI file. The problem is that when I print it out on my Epson printer the AI file looks a little more fuzzy around the edges than the PS file. I checked Document Raster Effects setting in AI (a warning said it was at 72 dpi) and changed it to 300 dpi. That helped a little. But, there still is a small difference so I am wondering if there is anything else I can do to make the objects appear as smooth in AI as they are in PS. I am a little out of my depth here so I hope someone can help. Thanks so much!

I received this response from the Illustrator forum:
"Unless you properly vectorize everything, there is no point in just embedding the PSDs in AI. Since you speak of "simple, with two or three flat colors", I'm afraid you started off on the completely wrong foot by doing it in PS in the first place. This screams "it needs to be vector" all over the place, the reason being that for silk screen you create a sieve mask for each color and for maximum sharpness of these masks, vectors work better. It's not an ultimate requirement, though, but based on that info, as a minor you must familiarize yourself with how to create spot color separations using multichannel/duoton/tritone documents in Photoshop. It may still cause fuzzy edges, but at least you should get clean colors. Otherwise you need to learn AI and re-draw all elements there, assigning proper color swatches which then could be used to create proper separations..."
I would appreciate being directed to a good tutorial on how to create the spot color separations in Photoshop spoken of here-is there one anyone recommends? Thanks!

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