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So I was using my Williams Caslon font to set a book, and decided to use the "all small caps" option. This was to access the (ahem) very cool feature of special small caps figures and parens, to create discrete citations for display quotes.
I tried at first setting up a "character style" to do this, as in that dialogue box you have the option of choosing "open type all small caps". But when I saw the result, I freaked out, because the numbers were too small, and there was no kerning to the colon, and it looked a wreck.
Had I hallucinated doing all that sizing and kerning of small cap figures? Then the penny dropped: fake small caps. InDesign wasn't using the small caps figures or the kerning in the font, but creating awful fake ones, with no kerning. When I formatted the citations directly using the fly-out open type panel, choosing "all small caps," and everything looked good, with all the kerning. Relief.
But it ought to be possible to create a character style that uses real "all small caps." Is the problem of the "character styles" creating fake small caps for "all small caps" a bug in Indesign CS4? Is it corrected in CS5?