Where has live trace option gone?

Hi
In the past I have used the live trace option in cs2 to good effect.  Today I have a picture I've borrowed from the internet (yes i know!) which I want to place and then live trace.  However the only the live paint option is in the object menu.
Help!
S

Thanks for reply.
Yes the image is selected and no it is not embedded.   I looked in the keyboard shortcuts and there is no live trace - just a live paint bucket and live paint selection

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