. If you can get the image in a vector format, it depends on the software that the cuemaker uses, and what formats it will recognize .dxf is fairly universal, but again, it depends on the cad/cam software used. A choice between line art and grayscale I don't really understand, grayscale refers to raster images, line art might refer to vector, but I'm not sure.
If you're converting a jpg file, black and white is best. The more contrast between what you want engraved, and the background, the better.
As to size, the bigger the better for jpg. That way it can be blown up a bit and not get all fuzzy on the edges. I usually manipulate an image in photoshop first, cleaning it up, and making sure the background is nice and white, and the image I want is nice and black. Then I convert it to vector with other software.