Autodesk has CadOverlay (for 2000i or older) or Raster Design (for 2002), that has the ability to vectorize raster images. The process can be easy or very difficult, depending on the image.
As far as the following of the dots with Raster Design, the user tends to lead it through. The more clutter in the image, the more tedious it becomes. USGS maps are impossible because they have so many other things on them besides topo lines.
Even with Raster Design, I tend to just redraw the lines. The user is able to set the Snaps to image pixels.
Or with just Acad, insert the image and just trace over the lines with plines. Then you can some out the curves by splining the plines. It will take less time then you think.