1) Posterized the photo in Canvas X to 5, saved as ping, Uploaded the png to Vectormagic
2) Download the converted into EPS format.
3) Open it with Canvas. It opens perfectly.
4) Export the file as Adobe Illustrator 7.0 (couldn't get color with 8 everything turned blue)
5) Import the file in Anime Studio.
See the results
WOW





He's my grandson

By posterizing to 5 colors it dosen't load AS down on the import. This was a photo and I'm sure cartoon drawings wouldn't matter as such.