Select the Gradient Tool and fill the shape with a gradient.
One end is 50% black with an opacity of 100%.
The other end is white with an opacity of 0%.
Go to Effect > Pixelate > Colour Halftone
Max Radius 6
It should look like this.
Go Object > Rasterize > Bitmap at 300ppi
Then Live Trace with these settings
Expand
recolour and drag back over the original shape.
Michael you left out the step to Expand after doing Live Trace. This might confuse some people. :)
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