Here's a vid of making a toolpath from an image:
http://www.i386group.com/bobhuh/bobart/bobart.htm
If you want to "Vectorize" the image so you have line geometry from the image....You want to load the image the same way, but from the "Images" feature, then right click the loaded image and choose "Vectorize". All the settings can produce various results. Usually what you want to shoot for is the least amount of geometry to represent what your looking at.
Burr