I'm not sure exactly what effect you're looking for, but something like this is simple in Photoshop. Create the letter, rasterize (layer > rasterize > type), then apply the mosaic filter (filter > pixelate > mosaic). Don't know how to in Illustrator.

I would have thought the OP meant "screened type." In other words, the h should print grey (depending how small the dots are).

You could always get (or make) some vector art of circles (or of the space between the circles), put it over the h, and subtract the paths.

PhotoShop would be the preferable tool to use (as it has a built in halftone filter)

Hi, do you mean something like this Arial T vector halftone effect I just did in Illy CS5...

...?

Hi guys thank you for replying!

@5star that is exactly what i'm looking for, do you maybe have the time to explain how you did this please?

Sure no probs, basically this is old school Ps stuff you know blur and then hit with the effect 'cept in Illy you have to go from vector to raster and then back to vector using Live Trace.

1. Type your type.

2. Blur the type ... Effect>Blur>Gaussian Blur ... I set the amount to 10 in both examples.

3, Raterize the type ... Object>Rasterize, and in the Dialog box set the ppi on High. Using the Custom option and setting the value higher will result in a more detail rendering of the blur through the halftone filter resulting in more dots ...from 300ppi to 600ppi there is quite a difference. In the above T example I used a setting of 600ppi and in the below H example I used a 300 (default High) ppi setting.

4, Apply the Color Halftone Effect ... Effect>Pixelate>Color Halftone, and in the Dialog box you can play around with the settings. But in both my examples I used a Max Radius of 40, and in the above Arial T I set all the Channels to 20 ...in the below Gotham H I set all the Channels to 90. Try messing around with the Channel settings to see how the Effect is rendered.

5. Vector the Color Halftone ... Object>Live Trace>Make and Expand.

After the Effect is applied you can trim or crop as desired by using the Pathfinder options...

Thank you very much for taking the time to explain 5star, its really appreciated! I'll try this out first thing in the morning. Thanks again and a nice day to you.