I know that, for 1/2 spin systems, the projection of the spin vector along one of the base's axis can be represented using Pauli's matrices as $\hat{S}_i = \frac{\hbar}{2}\sigma_i$.
While studying spin-orbit coupling I've seen the actual spin vector being written as $\vec{S}=\frac{\hbar}{2} \vec{\sigma}$. This expression confuses me since I don't understand what $\vec{\sigma}$ and $\vec{S}$ actually are: vectors with operators as coordinates?
Moreover, the Hamiltonian of the SO interaction is proportional to $\vec{B} \cdot \vec{S}$. Although I understand the physical meaning (potential energy of a magnetic dipole in a magnetic field), I don't know how to evaluate the dot product: if $\vec{S}$ is really a vector of operators, should I multiply each operator for the corresponding component of $\vec{B}$?
And if that is the case, what is the physical meaning of a vector with operators as coordinates?