I'm trying to clean up the graphic below which I scanned in. I need to turn the white border into transparent (for printing on white vinyl) and have a solid black outline with red interior. The issue is that this will be quite a large graphic so I want the lines to be perfectly smooth and I just don't know how to accomplish this. Any help is appreciated!
I'll be using Illustrator at the end to recreate the majority of text and to vectorize it. I've been working in photoshop to change all the colors and get the borders as good as possible before vectorizing though. You say it's better to do this in illustrator? Do you mean using the Pen tool and tracing the letters? Or another way?
In addition to what Ged said so well, you can start by seacrhing for Rectangle Tool, Live Corners, Offset Path, Direct Selection Tool, Add Anchot Point Tool, Shape Builder, and Knockout Group/Opacity Mask (if you wish/must, but maybe unnecessary because generally in printing, white means no ink), here: