Particular graphics software packages are intended for unique purposes, so artists need to be aware of the difference between file types that they offer. If you become unsure about why files are behaving in a certain way, go to the help menu of the graphics package you are using. The information about Vector and Bit Map Files has been paraphrased from Adobe Illustrator CS Help Files.
Vector Images
"Vector graphics are made up of lines and curves defined by mathematical objects called vectors." Adobe CS Help
Vectors describe an image according to its geometric characteristics. This means that vector graphics are defined by a specific width and length, set at a specific location, and filled with a specific color. They can be moved, resized, or there can be a change of color without losing the quality of the graphic.
Because they are resolution-independent, they can be scaled to any size and printed at any resolution without losing detail or clarity. This is why they are a good choice for logos and other graphics that must retain crisp lines when scaled to various sizes.
Bit Map ImagesThese raster images use a grid of small squares known as pixels to represent images. The pixels are assigned a specific location and colour value. This creates a kind of mosaic of pixels which give an appearance of the object drawn. When you edit a bit map image you are working with pixels rather than objects or shapes.
Bit map images can represent subtle gradations of shades and color, but, unfortunately they are resolution-dependent, which means that they contain a fixed number of pixels. This means that they will lose detail and appear jagged if they are scaled on-screen. If they are printed at a lower resolution than intended they will appear fuzzy.