How to Create a vector logo from a bitmap logo in Photoshop

Thinkingserious teaches us how to use Adobe Photoshop to transform a normal bmp or jpeg logo into a vector logo that can be MADE as small or large as desired without losing quality. He creates the text, leaves it white and then adds a stroke. He picks the exact color from the original image. The stroke should be 1. Then the gradient is done using the colors from the bmp image. This is a two-step process. First he creates the top gradient. He also adds a soft inner bevel. The end result is saved as an .eps file.