ok..here's what I think...your original "logo" (which would have originally been your "crest")has a lot of history associated with it..don't throw it away for some flashy new image..you'll be sorry for it, if not today, tomorrow, eventually. Try and keep some of your history in your new design, all these "crests" that were designed years ago mostly followed a formulae. The designer would usually pick out a few "icons" of the local area and incorporate that into the design. That is what the "rose" and the whatever they are..lighthouses? chimney stacks? 2 alleys?...they'll be something related to the area your in. One thing I think is wrong with your crest is that the lettering is running downhill...it should run uphill...(downhill is a negative, uphill is a positive)
The shield and scroll go way, way back...but these days look a bit dated. You can have a very intricate design..but as you'll see on your original crest, if it's to be enamelled it must have a metal outline around and between different colours. These lines are where the engraving bit has machined into the die.
To answer your question...I have converted a lot of logo designs to artwork which is suitable to be die-struck. What I have always done in the past for associations such as yours is to do three versions of the same logo...one for printed materials in colour..maybe with a drop shadow or highlights etc...one black and white...for faxing, t-shirt logo etc and then one to be made into a die, for badges, plaques etc. BUT they have to be instantly recognisable as the same logo without question. This is where good design and designers come into play. Some of the most colourful logos and designs I've ever seen are in black and white.

Happy to answer any questions you have, so ask, ask away....