Using the New Live Trace Feature in Illustrator CS2

Click the Expand button on the control palette when you like the trace results. The image is converted to vector paths. You can then manipulate it just like you would any vector image, using the direct selection tool to adjust paths and select sections of the image. If you click the Live Paint button, you will convert the duck into a Live Paint Object so you can use the Live Paint tool (which is next to the Live Trace tool in the toolbox, and looks like a paint bucket) to fill the areas with color, much like using the paint bucket on bitmap images in Photoshop.