From the Xaraxone November News:
The recent release of Adobe Illustrator CS2 introduced a new feature that has created waves of hype and interest. The feature in question is the Live Trace, which can be used to convert bitmaps and other raster images into vector shape compilations. Many Xara users may realize that this sounds remarkably similar to the Bitmap Tracer that Xara has offered for the last decade. Xhris provides a useful comparison between the different methods in this month’s Guest Tutorial.
The guest tutorial is well worth reading; and Gary Priester’s November Tutorial is particularly detailed, to help new users become familiar with Xara. It also shows off the new Xara Live Effects.