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Help With Logo Design

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I am trying to design a logo for a business I am planning to start in the next year or so. I have some experience with Photoshop CS6, but none really with Adobe Illustrator CS6. I am working with two jpeg images, one in black and white, one in color. I want to combine them, flip them, use the trace tool in Illustrator to create the basic shape and look I want, then do some adjustments from there. I can manage most of that (not sure if the process or end result is correct, but it LOOKS right), but when I get to the logo look I want to work with, I need to be able to set the opacity at less than 100% to make a semi-transperent image so that I can erase or modify portions of the image. I realize that some has to be done in Photoshop then moved to Illustrator for further editing, but I think I am missing some steps along the way. If anyone can help me with this I would be very grateful. If sample images would help, let me know and I'll supply what I can to help illustrate my dilemma.


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