To change the spacing between characters in MS Word documents, do as follows:
Select the text you want to change.
On the Format menu, click Font, and then click the Character Spacing tab.
Do one of the following:
3.1 Expand or condense space evenly between all the selected characters
3.2 Click Expanded or Condensed in the Spacing box, and then specify how much space you want in the By box.
Note: Kern characters that are above a particular point size
4. Select the Kerning for fonts check box, and then enter the point size in the Points and above box.
Tip: Selecting Expanded or Condensed alters the spacing between all selected letters by the same amount.
Kerning adjust the spacing between two characters to create the appearance of even spacing, or to fit text to a given space.