Step 2 & 3 simultaniously obviously!

I usually determine the side bearings when I draw each glyph, not after all the glyphs are drawn. Some refinement is usually necessary as more glyphs are drawn. Or I may change my mind about the spacing after the glyphs are all drawn and make global changes. The key thing is that I work on the spacing at the same time I'm drawing the glyphs, not as a completely separate step. The design of the glyphs are affected by the spacing and vice versa.

Okay, you're right of course. Designing glyphs isn't just about the color, but more so about white. However, how does one determine offset? Is it about looking at the text aligned left, and then right? And then accordingly determine kerning? That would seem logical, doesn't it?

BTW, the design was already made in AI, I'm transferring it to FL.

Determining spacing is a big subject. You might want to look here:

http://typophile.com/node/27804

Drawing in Illustrator may seem like an easy way to design a font, especially if you know Illustrator well, but it significantly increases the number of steps towards a finished font. And it's hard to work on spacing in Illustrator. Better and faster in the long run to draw right in the font editor.

Thanks Mark, this node is just what I was looking for!

I USED to design glyphs in AI, but now I'm all for FL!

Thanks again!