How do you ouline image

Can someone show me how to outline or trace an image that is imported so I can work on it.

Have you tried the search function already?

Unless it’s an easy image to trace, try my
http://sketchucation.com/pluginstore?pln=SKMtools
It includes ImageTrimmer which can help with this [needs a PNG image with transparency set for unwanted parts, and JAR files set to auto-execute in Java] …
http://sketchucation.com/forums/viewtopic.php?p=294815#p294815