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[ATTACH]23825[/ATTACH]

I purchased the above image for use in a logo. What I'm trying to do is make a "stitched line" come out of this heart and curve around my company name. I have been able to get a dashed line in Photoshop, but if I look closely at this image, the dashes have rounded edges. I can't for the life of me figure out how to get the edges rounded. Also, when I get the dotted line, it's very blurry looking and not sharp. Here's the link to this pic in case you can't see the rounded detail that I'm referring to. Can someone tell me how to do this? Thanks!