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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?
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.