Craft Edge

I am trying to trace a graphic with the "bucket". But I cant get the "fill" to say "line" it just says "none" or is black.. please help!

I'm trying to convert lettering delight images to SVG files

Here is the link to the tutorial that will show you how she explains it very well But I am a bit frazzled and I had to watch it a couple times but that is me,It is a good tutorial
http://cleversomeday.wordpress.com/?s=paint+bucket