i had a local company use my avy logo and when the blew it up on the shirt it came out terrible......the tomahawk in the back ended up looking like a poodle on the shirt it was awful lol...s
Wow, just wow... That is truly one of the dumbest things I've heard of a company doing with a piece of art that is only 72dpi and 100pixel wide.
It should only take 15-20 minutes of their time to recreate your logo in Illustrator, even from your 72dpi avy. The tomahawk in the logo isn't that difficult to redo and the font would be even easier to reproduce.
Anyway, if you want I can recreate your avy in vector form tomorrow morning for free. No skin off my balls
PM me your email address and I'll send it over when it's done.
You'll have to have someone else make you a new 'custom' logo if that's what you are looking for. Sorry, just not enough time while at work to hook you up properly.