To be honest i would probably ether use the pen tool in illustrator or photoshop to trace the image.
You get so many more options and better quality probably than trying to fix the faded lines.
If the logo is likely to be reproduced at larger scales a vector version offers considerable advantages, so Illustrator would seem to be the primary choice for recreating it; but one can create vector data (eps or pdf) from Photoshop, too, if one prefers.
In Photoshop CS6 there may be an additional option beside the pen tool. In CS6 You can change text into shapes. Once you have the characters as one or more shape layers you can edit the shape layer vector paths and distort the letter and move them about. I think the combo WY may even be made be merging shape layers. and when all shapes are in place merged into a single shape and also made into a custom shape that can be used with the custom shape tool.
While its possible to use the pen tool to do a good job it take better skills then I have with the tool
What is nice about having a single vector Path is they can be worked made better an saved as a custom shape. Shapes can be sized constrained to its Aspect ratio or distorted into and aspect ratio. Shapes can be filled with solid color or pattern. They can also be stroked and the stroke adjusted. Shape layers can also have Layer Styles. Example
WOW! Im not sure how you did that but that is exactly what im looking for. Did you use the pen tool? Im not too photoshop savy but i can manage to create a few simple things. I'm currently trying it with the pen tool but i cant get my paths to match this image precisely. I'd like to know the correct method of doing this so I'll NEVER have this problem again.
Yes the pen tool is very powerful however like many tools in Photoshop you need to learn how to use it and you need to practice using it. Search the Web for Eddie Tapp's ABC of the pen tool. IMO its the best tutorial on the pen tool I have seen. Some time Eddi make it available on the web otherwise you have to buy one of his CD that has the tutorial. You would learn nothing if I uploaded the custom shape. You should learn how to use the Pen tool if you have and plan on using Photoshop.
You also have to learn how to edit the paths you create with the pen tool. If you just create a large text layer Rowdy you can convert that to a shape layer and use the direct selection tool, path selection tool and the Pen tools to edit and play around with editing a path like you want.
If you do not know Photoshop well and have never used the Pen tool you will most likely not be able to trace Rowdy for some sub path like in the r o and d need to be made subtract sub paths. Converting text into a shape will do that for you.
Eddie Tapp tutorial can not find the video tutorial which is a great tutorial but I did find this
http://books.google.com/books?id=yV723mH2FtoC&pg=PA180&lpg=PA180&dq=%2 2Eddie+Tapp%22+ABC+Pen+Tool&source=bl&ots=fO5E3euhq-&sig=xLFbf8vu_HUei 6qYU3e5ZS2bzU4&hl=en&sa=X&ei=WjA-UfnLOoq80AGdqYGIDg&ved=0CE8Q6AEwAw#v= onepage&q=%22Eddie%20Tapp%22%20ABC%20Pen%20Tool&f=false
+1 to the Pen Tool.
Once you have the logo as a well-drawn path, you can manipulate it easily.
When you're drawing with the pen, try to create a minimum of points, and adjust the bezier handles to get your curves to align with your artwork fairly well. Then once you've drawn the paths, you can turn the whole thing into a shape layer as described above, disable the artwork layer, then fine-tune it to look really good.
Use the Control key while adding points with the path tool to move them around to fine tune things. If you click in the wrong place, use the History to go back to redo one or more steps.
Once you have the path just as you want it, you can turn it into some pretty amazing stuff... Here's a 3D extrusion of the path, for example.
Since I quickly drew the path to illustrate the above, I might as well provide you with a copy. Click on the path with the direct selection tool to examine the points and bezier handles to get an idea of where I put them.
After you practice with the pen for a while it will become natural to you, and you'll find you can almost magically match drawn curves.