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limbo - 6:01 pm on Sep 30, 2008 (gmt 0)
If you have the time and the inclination, learn to make logo's using a vector application. It will never need scaling, will be true at any resolution and is portable and editable for all formats. You could even use the selection to create a work path so you don't have to redraw it. Illustrator is the best tool, a little steep to learn at first, but as soon as you have nodes and pen tool sussed you'll wonder why you ever used Photoshop for this.
Adam, while thecolaman makes a decent point for I totally agree with akmac - you should really be using a different tool for this.