So we all have seen lots of so called "Vector" images but i bet you that less then 60% are true vector images. So what is a vector image then? and what is a raster image? In a nutshell a vector image is made up of lines and fills that can be stretched to any size without pixelation. while a raster graphic is made up of 1000's of tiny pixels that when zoomed in on appear to be "pixelated" or blurry. Now I'm going to prove to you the difference.
Raster Graphics
Raster graphics like i said are made up of thousands of little tiny pixels. Each pixel is shaped like a square. that's why when they get pixelated they look like a bunch of tiny squares.
Some programs that make raster graphics. **This is not them all.**
Photoshop, Paintshop pro, Fireworks, GIMP...
What kind of pictures are Raster graphics good for?
Photographs. And any other highly colorful image requiring precise coloring...
Here's an example of a very basic raster graphic at 100% zoom. (normal zoom)
Now here is the same circle at 1600% zoom (highest zoom in most programs)
You can really tell the square shape of the pixels and how bad the picture looks when its stretched larger or zoomed in on.
Vector Graphics
Vector graphics are made up of lines and fills. instead of pictures. These pictures can be zoomed in on without pixelate or any loss of quality.
Programs that make vector graphics:
Illustrator, FreeHand, Flash...
What kind of images are Vector Graphics good for?
Cartoons, animations, Small image files...
Here's an example of a Vector graphic at 100% zoom (normal zoom)
And here it is at 1600% zoom. (highest zoom on most programs)
Notice how there is no pixelation or loss in quality of the picture.
Here are the vector and raster images zoomed in on just to compare the differences.
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| Vector Image | Raster Image |
Note: all pictures on here are raster graphics now, but were not until i saved for web.
Hope this helped to clear a few common questions up. if you have any more questions about this feel free to ask.
More Photoshop: 
