Apart from possible copyright issues, and the not overly clean tracing (you might consider using the Pen Tool instead), something that has been Live Traced has to be expanded before you can work with it (this is pure hearsay as I have never tried it).
You should then be able to Select/DirectSelect the relevant parts and apply the gradient.
I have expanded the live traced etc and cleaned it up using direct selection tool however when trying to apply gradient it
applies it to only the white outline and not the inner text. any ideas how to
do this or do you even know what font this is ?
Jacob Bugge wrote:
<snipped>...something that has been Live Traced has to be expanded before you can work with it (this is pure hearsay as I have never tried it).
Absolutely correct Jacob... a Live Trace has to be Expanded before you can use it...
I believe, if you:
1) Create a copy of the lettering between the white lettering and the background (which I assume is a filled rectangle);
2) Select both lettering copy and background and Pathfinder>Minus Front (Subtract from shape area in older versions);
You should be able to DirectSelect the portions inside the white lettering and apply the gradient.
You may have a look for the font on this site: