A quick primer on DPI, etc.
What everyone needs to know is that regardless of the measurments, you need a reasonable IMAGE DEPTH for good printing. An 80inch x 90inch file at 72 DPI that is scaled down and printed at 8x10 is going to have a lot of image depth. The DPI when it's scaled down is effectively much higher than 72DPI (unless it is resampled rather than scaled down).
DPI is Dots per Inch. So if you have something at 200 dpi that's 8 x 10, raising it to 30 x 55 is going to effectively reduce the available dots per inch to something like 35 dpi. Photoshop does bicubic resampling when you upres or downres by default, so it will automatically "blur" the lines to make up for the loss of actual DPI -- tries to fake the additional lost DPI. If you would rather it "pixelate" than blur, you can choose "nearest neighbor" in the resample drop-down when you resize.
The short answer is,... it is difficult to upres artwork effectively. There are a few tricks to upres stuff, but those tricks don't go very far. You need proper image depth to begin with, or you are going to be in a hurt when you are ready to print. The DPI argument depends somewhat on the output. If you print a billboard, the DPI might be 45 or 55 DPI ... no one is going to notice when you are 100 yards away. When you are 5 feet away, not many people are going to notice the difference between 72 DPI and 200. At a foot or 2, it's really noticeable.
As far as vector art... there is an unlimited color palette. HOWEVER, it is difficult to convert smoothtone artwork with what is basically mathmatical plotting of points. If you want to vector trace art originally done with an airbrush, or trace a piece of art with very smooth color transitions... it's going to be time consuming. It can be done, but only by hand. Streamline gives it the old college try, but many times it creates so many paths, the art can't be printed on a normal printer easily.
To sum up. If you start with master art that is at-size and 300 DPI, your final product has a better chance of excellent printing than if you start with a low-res sample. If you can, I recommend vector... you don't have to worry about DPI, and the artwork can be modified, shared, manipulated MUCH easier in the future.