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Just read this paper which was support material for Joe Clark's presentation at AtypI a few days ago. A worthy read.
Digg it here: http://www.digg.com/design/Type_in_the_Toronto_Subway
Thanks for posting this Jared -- I've been trying to find documentation on the spacing project for ages. Wish i could have been there for the talk.
Amazingly thorough. We need more citizens like Joe as passionate about changing things for the better as he.