If you want to start with an image, then what you're doing is the way to do it. To get rid of the ridges, use a smaller stepover, and the largest diameter tool that will give the detail you need.Originally Posted by saturnnights
A much better way to go about this, IMO, is to draw the shape in a simple 2D CAD program, with the inside and outside profiles. Then, use something like SheetCAM, with can pocket out the inside and outside, with a cleanup pass around the profile. Most likely this will also cut in a fraction of the time. But you'll have to draw the parts in CAD, not use images. A lot of people will load the image into the CAD program and basically trace it.
Hope this helps. There's a pocketing screenshot of SheetCAM on there website, http://www.sheetcam.com/mill_moreinfo.htm