XV does a very good, albeit interactive, job at image conversions ! load the image in any format, and then save it as Postscript (with the extension .eps), don't forget to set the compression (which is only available for 8 bit colour images and reduces the image size by a factor of 10 compared to non-compressed.) XV also offers easy ways of editing and reducing the colours. Ofcourse you can also use PC-based tools like Corel Draw. The quality has so far never disappointed me for technical purposes. Good luck !
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