Is this possible? And if so how?
Threre really isnt a way to turn raster to vector, pre se. You can try and trace the file, and there are some AI tools that "help" trace bitmaps, but I find them to be mediocre at best. Best results usually come from manually tracing the image.
You can sometimes get decent results with Live Trace in Illustrator, but it really depends on the image. As said above, you are usually better of to trace the image manually.
I've done quite a bit of this type of work. A lot of it is experimenting with the artwork. Best way to trace automatically is to break the image down to the most simple areas to trace (convert to black/white, convert one colour at a time etc). Is definitely dependent on the content and you can convert a lot more than you used to. But the results really depend on how much time you want to spend doing it. As the guys said above, if you are handy with the pen/vector drawing tools then tracing is usually much faster.