If you import in Photoshop, most of the files will pixelate, cutting and pasting is beter yes. The docment you import in should have a rather large dpi to get clear lines. If you make a new document and import a .ai, .eps or .wmf file, make it really large! But if you have Illustrator, then you can do a lot of manipulation in that particular program. I do not know with what you want to end up with, but is sure is a powerful tool. If you grasp the basics of those darn Bezier curves you unleash a power that is unlimited. Unlimited scalable, that is too. Maybe you do not need Photoshop at all! I do have my share of Illustrator know-how, so if you have questions, do not be afraid to ask! Good luck!