I just discovered that letter-spacing doesn't always work in webkit (and perhaps other browsers?) when embedding fonts. I've tried it on two different fonts and received different results.
"League Gothic Regular" will work
http://www.theleagueofmoveabletype.com/fonts/7-league-gothic
"Quicksand Light" will not
http://www.fontsquirrel.com/fonts/Quicksand
What's the skinny? Is there a way to force the hand of non-compliant fonts?
Quick note: Firefox does seem to apply to both fonts.
I'm not sure I have the answer but I was having a word-spacing problem with League Gothic from Font Squirrel, I couldn't figure it out until I re-generated the font-face stuff on the site using different settings. I use the Paul Irish's Bulletproof method...
Font Squirrel settings http://img59.imageshack.us/img59/8784/screenshot20100428at132.png
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