I can do a tutorial with screen shots if you need one, just let me know if you are in PS or PSE.
I'm copying this from the download page from the author
--- IMPORTANT, PLEASE READ ---
To make this font display correctly -- that is, with the beginnings and ends of each word closed -- you must begin each word with a capital letter and end each word with the symbol ^. (There are two irregularities: W & V. If a word contains a W, you must end the preceding letter with a ^. If a word contains a V, you must end the preceding letter with a ^ and capitalize the letter following the V.)
Amazingly^ Fe^w^ Discotheques^ Pro^vIde^ Jukeboxes^
I can do a tutorial with screen shots if you need one, just let me know if you are in PS or PSE.
If you use Photoshop, I know you can adjust how far the letters are spaced. I usually play around with that on this font because I've noticed the same thing.
To get to that spot you go to Window > Character
I do basically the same thing. One thing about this font, though, used to give me fits. Some of the letters don't quite meet up, so when I tried to select the area outside the word, I'd get the insides of some of the letters. That absolutely drove me crazy until I figured out what was happening! I think what I would do to fix it is put a contrast-y layer underneath so that I could see where it didn't connect and use a brush to fill in the gap.
All I do is color it in with the paint bucket..