The Newcastle logo is bitmap, and thus not suitable for pasting into X3D. Having said that, the bitmap is of such high quality, it may be worthwhile using Xara Xtreme's bitmap tracer function to obtain your vector image.
Other than that, as others have said, hand tracing with the Shape Editor tool is another solution.
EDIT: I see you beat me to it, Dave. How come you have a black background on the Newcastle logo?
Saludos,
Bob.