.eps rasterizing very pixellated

[Pobedka]

As the title says, when I open a small .eps, I'm prompted to rasterize. When inputting large dimensions it comes out very pixelated.

I can make the .eps much larger in illustrator before opening in PS, but I'm confused. Does PS no longer scale vector files correctly on open?

[Barbara Ash]

Instead of choosing File > Open, choose File > Place or use copy/paste. With Place you get a vector. With Paste you get a choice: choose Shape Layer.

This allows you to resize the vector without loss of quality.