Basically a vector drawing is made up of lines, it's much like drawing on paper. You make a box then fill it in. As opposed to bitmaps which us coloured pixels to generate an image.
Illustrator is ok as long as you know it inside out and you only want to work in Adobe based programs.
CAD programs work in vectors, some of which are super simple, but you wont be able to design coloured or multi layered logos in CAD.
Corel Draw is by far the best, and is so much more compatable with other software. The new X5 version is simply a-mazing! Though you do need to be a little more carefull with colour profiling in Corel if you are going to use it for printing through another software.
Depends what you want to do with it though really as to which would be the best package.
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