Tracing in Illustrator CS2

I’m currently learning Illustrator in my spare time, and I recently got a project from my boss that requires Illustrator. I have to convert a jpeg image for print on a handbag. I tried the Live Trace tool with many different settings, but it keeps coming out with wavy lines. Should I add some kind of filter to clean it up before Tracing, or should I just use the Pen tool and spend the time manually tracing? Any suggestions would be helpful.