I have been working with Photoshop for about 5 years but I'm pretty new to Illustrator. Here's the problem...

I recently redisigned my logo in Illustrator CS3 and it looks great as long as I view it in Illustrator. I need to be able to work with the logo in Photoshop, but when I open the AI file, its blurry. Same thing in png format.

Am I saving in the wrong format?

I know I am doing something fundamentally wrong, but I'm drawing a blank here.

Please give me your opinions so I can feel like an idiot and get it over with..

Just because it's an AI file does not mean it is a vector image. AI files can contain both vector and raster elements, the latter of which can look blurry when opened in PS. PNG, of course, is a raster format, same story. Anything that is completely vector is all shapes rather than pixels. When you open such a file in PS the default calls for a raster conversion of those shapes at whatever dimensions you specify -- VOILA! No blur!

tim