Yes, Photoshop 'can' do vector if you want to spend hours creating the same art that a program designed to create vector with can do in minutes. The problem is, you can't use most of the Photoshop tools to do it with -- which really makes it difficult to achieve what you're after. It's like saying "you can't build a house without power tools". Of course you 'can', but it won't be nearly as good of a house as you can build WITH all the tools you need, and it will take years instead of months.
My argument on another string was that someone said "I build vector in Photoshop by using 300 dpi instead of 72 so it can be stretched to a larger size without losing quality". That showed a total lack of knowledge about what a vector graphic is, and I went on to explain how a vector works as opposed to a raster image.
So the bottom line is YES, you CAN create a vector image in Photoshop, but you are VERY limited with what you can do. You can't add gradients, you can't add photographic material, you cant do any of the things you can do with a true vector program like Illustrator or Corel etc.
Why would you attempt to build a house vrom scratch with no power tools? It's nuts!
Photoshop is made fort raster graphics, Illustrator is made for vector.
My opinion! (along with a quarter = 25 cents) heh.