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I created this lettering tool in Illustrator using Scriptographer
First you enter a word in the scriptographer tool options - then the tool gives you the letters piece by piece.
Click one and drag -> place the letter
Further clicks -> adjust the letter to the way you want it to be.
I made an animation using the tool by writing the words in illustrator - and recording the screen while I did undo's: typomation.mov (Quicktime 7 required for viewing) This should give an idea of how the system works.
The tools is the first in a series of tools that I'm planning to make that gives back the direct energy of graphic design. The days that people used to lay out pages with their hands. I'm not calling them the good old days, but there is alot that we lost after the DTP revolution.
I'm wondering where to take this. Does anyone have any ideas?