I'm trying to do a simple 3d logo animation. Every tutorial I come across imports a psd or illustrator file and they simply right click on the layer and select "create shapes form vector layer" however that option is greyed out on my screen. I've tried the same thing with an illustrator file but when I do that I get a grey square on the screen. How do i convert this to a shape layer so that I can extrude it and do the animation?
This pretty much indicates that neither of your files is actually compatible to support this feature. AI artwork turning grey means you used a raster-based feature like e.g. complex gradients or pattern fills that cannot be re-created as shape layers simply because they don't have such stuff and similarly attempting to convert a PSD may fail because you didn't correctly create the paths in PS or laso used a feature liek a drop shadow that gets in the way of a successful conversion. To avoid further confusion I would suggest you read the online help on these features and what is supported and adjust your artwork accordingly: