Trying to convert a jpeg to a svg in inkscape

jpeg is a raster image, svg is a vector image, you need to redraw your jpeg in vector to be able to save it as a real svg, what you are doing is just making an svg with the raster image embeded into it.
http://en.wikipedia.org/wiki/Vector_image

you can try to autotrace your image to convert it to a vector image
1.select your image
2.Path menu > Trace bitmap (Shift+Alt+B)
3. check different setting, hit update to see the outcome, hit apply when you are happy with the result.
(Check also, Help menu > tutorials > Inkscape: tracing , for more info on this tool)

if this doesn't give good results I'm afraid you will have to trace it manually, which can be long depending on the complexity of the picture.

My problem is when I open a file (pic) in inkscape I get a pop up jpeg bitmap image import and the following items are checked ;
Image Import Type
Image DPI----FROM FILE
Image Rendering Mode--------NONE

I click OK this popup goes away and my inkscape screen goes from full to small and in order to get it large again I have to click the paper sheets in the upper right corner it then gets smaller and when I click the sheet of paper icon to make it large I go to full screen. I then set my dimension in" lock the numbers, next I go to pathe and select trace bit map and a screen pops up Trace Bitmap brightness is selected and I select live preview my picture pops up if I like it I click OK and the program freezes.
This picture I am trying to convert to svg is a scanned picture from my scanner I can up load a GIF from the internet and everything works fine any ideas??