Ive gotten a few questions from potential and current clients on the differences between A Vector Graphic and Bitmap Image. A bitmap image, also known as raster image is basically made up of tiny dots called pixels. Images like your digital photographs are well known bitmap images. These kinds of images has a certain limitation to how big or how small they can be resized/scaled without loosing sharpness and detail. Vector graphics on the other hand, use mathematical relationships between points and the paths connecting them to describe an image.
Examples after the jump