Q: Can I use the filters with Vector EPS Images? (Continued . . .)
A: The best way for you to achieve your goal of designing and seperating a multi-PMS spot color design for apparel is in Adobe Illustrator. While it can be done in Adobe Photoshop, it requires a more involved process. 

The Machine Wash filters, were primarily designed for use in Adobe Photoshop in order to offer the most usability for Apparel, Interactive, Print Design, etc. The Machine Wash filters can be used in Adobe Illustrator, but you'll need to manually follow a simple step-by-step process that in the end will open up a whole new range of usability for distressing your vector artwork as described below... 

Step One: Choose the filter you'd like to apply to your vector artwork by using the Machine Wash Filters within Adobe Photoshop. This will serve as a visual reference for placement, etc, sort of like a mock-up for a client. 

Step Two: Once you know what filter you plan to use, create a new greyscale document in Photoshop that is approx. an inch bigger on each side than your final Adobe Illustrator design size. Fill the background layer black, and create a new layer and fill that white. Apply your effect of choice to the white layer, effectively punching through to black. Flatten the image. 

Step Three: Go to the Photoshop Menubar and choose Image > Mode > Bitmap. Set the output resolution up manually to 600dpi, and choose Diffusion Dither. Save the resulting file as a .TIF file. 

Step Four: Open up your vector artwork in Adobe Illustrator, click File > Place > and locate the .TIF you just created and click 'OK'. It will import as a Transparent Bitmap file, where only the black art in the placed file will be visible, and can now be colorized to white or any background dropout color you choose. 

FOR MACHINE WASH 1.0 - 'ACTIONS' VERSION:
Step One: Choose the filter you'd like to apply to your vector artwork by using the Machine Wash Filters within Adobe Photoshop. This will serve as a visual reference for placement, etc, sort of like a mock-up for a client. 

Step Two: Once you know what filter you plan to use, open up the .PDF filter file directly off the Machine Wash CD from the Filters folder inside Adobe Photoshop. Starting with the size of your final design in Illustrator, scale the 18" x 18" .PDF file proportionally to an inch larger than the final Adobe Illustrator design size. 

Step Three: Go to the Photoshop Menubar and choose Image > Mode > Bitmap. Set the output resolution up manually to 600dpi, and choose Diffusion Dither. Save the resulting file as a .TIF file. 

Step Four: Open up your vector artwork in Adobe Illustrator, click File > Place > and locate the .TIF you just created and click 'OK'. It will import as a Transparent Bitmap file, where only the black art in the placed file will be visible, and can now be colorized to white or any background dropout color you choose. 

IMPORTANT NOTES FOR EITHER METHOD:
Illustrator will likely show a kind of cruddy looking preview of the high resolution bitmap but if you run a test output, you'll see the effect is indeed smooth. Outputting the .TIF as a bitmap from Photoshop at 600dpi like you did will create such a fine dither, it will mimic greyscale, but have the transparency you need to apply the effect in Illustrator. Prescaling your distress before outputting the bitmap will avoid possible moire or pixel bunching that could happen if you scale the bitmap after the fact in Illustrator. 

In the end, make sure when you setup your seperations, or send the artwork to a seperator, that you make sure NOT to seperate whatever color you have chosen for the distress pattern that lays over the design.