Vectorizing or Tracing

[psh]

Good day.
I met the following problem:
Very need to increase the quality of image, and one of my collegues did that:
http://www.megagame.lv/vector/old.jpg - start image
http://www.megagame.lv/vector/new.png - result

Please help me to figure out how he managed to do that. May be names of Software and some techniques how to reach an effect like this.

I am sure you know it, will you help me?
Thank you in advance, psh.

[MD]

Looks like it was done in vector drawing program like illustrator or freehand. It looks really clean so it was probably redrawn. and not traced.

[psh]

Thank you for reply.
But may be, if not step by step, a couple of hints how to do that?

[mylkhead]

Go into Illustrator and place the image into the area. Lock that layer. Create a new layer and just make shapes over top of it recreating the image beneath.