I searched the forum and found that NURBS curves are actually better than Bezier curves.
http://moi3d.com/forum/index.php?webtag=MOI&msg=5256.11
I still wish MoI would allow to draw Bezier curves like in Illustrator because I can't get my head around using the Freeform Curve with Control Points effectively.

Here's a screenshot from Illustrator followed by screenshots of my attempt to recreate the curve in MoI


First I placed all the anchor points


Then I added all the handle points


Then I adjusted the handle points


It works but Michael says in the above linked Forum post that its better to start with the Freeform Curve rather than converting straight lines like I did. But I tried and the curve just doesn't behave :)

I understand that the first two and the last two points of the Freeform Curve are like Bezier handles but what is the correct strategy for placing the control points in between? Obviously the control points have to be set like above but doing that on the fly is not intuitive to me. In Illustrator I pretty much know where to set the anchor points. By clicking and dragging in the desired direction the handles emerge automatically.

An animation showing how to correctly trace the attached shape in MoI would be most helpful.