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Since Photoshop is a pixel based program that's why you see the jaggedy lines, especially when you rotate objects. I'd definitely go with a vector program. Another vector program I like besides Adobe Illustrator is Corel Draw. It's also cheaper than Illustrator. The suite actually comes with Corel Trace which will take any image you'd like and vectorize it. But I would try and trace it yourself since that's the better way to go!
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