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Jill I would send an email to the person you are doing this work for and explain that this is not vector art and for $X amount I would gladly create it or they can have the designer send me the correct file format!
Either one, I do not have X4 or X5 but what I have heard is X5 has better color management now! Weather to buy new or upgrade is up to you! If you would buy new make sure you get the boxed version so you get the clip art and books (X4)!
Also did you explain to him about design/ownership initially? If not then maybe you dropped the ball! That doesn't mean you still don't own it but just saying this could make you look bad when word goes around!
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