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Had been putting off loading it since it was a busy week, but just installed to look at that question. I actually never enter text in photoshop, since I always use illustrator with photoshop on anything with text. But I just entered some text on screen in photoshop 7, & just put the text cursor between any 2 characters & hold down the alt key (on PC, probably option on a mac) then the right & left arrow cursors will tighten or loosen up the kerning. Just like illustrator.
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