What is the font? Can't really answer your question without knowing the font. All foundries have different EULAs.

Are you actually going to release this font—to the client or otherwise—or are you just altering the letters for use in the logo?

Most logos are conceived from manipulated fonts and there isn't any restriction on the altering or usage. Once you puchase a font for repoduction you have the rights to create any shape or form from it. An example is the horizontal or vertical modification that is allowed in page making or graphic programs.

Most EULAs allow (or at least don't disallow) the creation of logotypes as static images or even static outlines. What most (but not all) EULAs don't allow is the creation of a derivative font. I think we all assume or at least hope that you're considering the former option. No one at AT&T types A, T, &, T, death star to form the logo, they place an eps, bitmap, or use a logofont where the complete lockup is assigned to one key.

I won't be releasing a new font.
I'll only be altering the letters for the logo.
This happened to be a really well-designed Free font I found. I didn't purchase it.
I just went to the designer's website, where he has his free fonts posted. The download included only the font, no legal info attached. This font is posted on a few font sites, but there is no additional info. Only "download here" under the font name.

Thanks again for your help.

I wonder if the source of the font might make things more tricky. My advice related to commercial fonts. In your case there could be issues. Is the font legitimate freeware, did the guy who posted it make it, is there a type designer lurking somewhere with a freaky license that prohibits commercial exploitation?

I would really contact the foundry or let us know the foundry. We might be able to say for sure. Otherwise you are swimming in vaguely warm waters.

it turns out this font did have a Read Me file attached, (just not posted on the source I originally got it from). So the Read Me says that I may use the Typeface for every kind of publication.

I guess I'm safe then.

sii -- I'm not sure I understand what you mean by "derivitive font"- I would like to alter existing letters from a font. I definitely don't plan on creating a new font derived from the original... only 10 letters (eesh, what a loooong logo!!! that's a whole other concern for another forum!)