I am no expert on this, but I did spend some time just recently working with an outfit that sells vector graphics in order to get the stuff into Mach correctly. Result shown here . . just hang in past the belt demo and you'll see the pretty fairy being 'engraved'. The artwork is specifically double lined for vinyl cutting so it is not ideal for engraving, but should be right up your alley:
http://www.youtube.com/watch?v=sC2urdg_bqgThe DXF format that is provided will not read into LazyCam correctly. I believe the problem is that LazyCAM does not support splines. It is my recollection that D2NC also does not support splines, but I would not swear to that. I used AutoCAD to import the DXF, exported a WMF and then read that into LazyCam fine.
The artwork vendor was seeking a less expensive alternative to AutoCAD and after a bit or research I discovered that a vectri program called Cut2D reads in DXF files that contain splines and then can output any format you need. It works great and it is $150. There are a number of other nice features worth considering if you are interested in engraving and blade cutting from vector data. A functional demo is available and it is a LOT of fun to mess with.
Both D2NC and another utility program from
http://www.cncwrapper.com/ work very nicely to wrap the image around a cylinder, if you have a need for that. The wrapper program is only $20 and is worth it just for the nice G-code editor in my opinion.