help!! halftone pixelated in illustrator. what am i doing wrong?

[LMSigns24]

I am creating a halftone pattern for large graphics. Graphic is 137" x 24". Why is pattern so pixelated before i live trace it? I am fooling around with resolution and not getting anywhere. circles are not circular either. i actually thought i had it but when i printed, the dots were way to large and i stopped printing. what am i doing wrong????

 

[ColoPrinthead]

Sounds like you are tracing a low quality raster image. You might try tracing at a smaller scale, or making a higher quality halftone image in PS and then tracing.

 

[LMSigns24]

I down sized image too and still pixelated. Obviously I'm doing something wrong but cant figure out what. I am creating in illustrator and would like to stay in illustrator but maybe Ill create In PS.