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How'd They Do That? - Wreaking Havoc on Text
Create a "distressed" look using Illustrator's Live Trace tool. 
May 2007
Download the “grungy” image 24043164 below, Photos.com, www.jupiterimages.com (available free at www.dynamicgraphics.com/downloads).

1. Place the image, or another similarly appropriate image, on the artboard in Illustrator. Create a text box and enter the word(s) you would like to distress. With the text box selected, choose Type > Create Outlines.

2. Select Object > Ungroup to separate the individual letters. Without deselecting the letter shapes, choose Object > Compound Path > Make. (If the letters are not changed to a Compound Path, the distress effect will only be applied to one of the letters, not the entire group.)

3. Next, select the image placed earlier. Choose Object > Live Trace > Tracing Options.

4. In the Tracing Options palette, use settings shown. Note: setting the Threshold lower will result in less contrast in the final trace result. Clicking on the Preview button will allow you to see the changes made in the Options palette before clicking Trace.

5. Select Object > Expand. Use settings shown.

6. Deselect the image. With the Direct Selection tool, click on a white portion of the image. Choose Select > Same > Fill Color. This will select all areas of white in the traced object. Press Delete to remove the white shapes.

7. Choose Object > Arrange > Send to Back. Move the image behind the outlined text.

8. Choose Select > All. Choose Window > Pathfinder to open the pathfinder palette. Select the Minus Back button. This will delete the grunge pattern from the outlined text. Deselect to view.

Preview Hint
Choose View > Outline as a way to preview the final distressed outcome. Choose View > Preview to return to normal screen view.

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