I would like to change a jpeg to a vector and take out the background using CS5 Adobe Ilustrater on Windows 7 OS.
Could someone help with instructions?
You'll need to use the Trace feature. You may wish to post this in the Illustrator forum, as you'll get more targeted responses there.
You may use Live Trace, with its different options, or redraw with the Pen Tool. The former may be suitable in certain cases, the latter requires some skill and knowledge, but may give you cleaner artwork.
Watch this http://www.adobe.com/designcenter/video_workshop/?id=vid0043