Steve~
The "output fewer elements" suppresses AI CS3's kerning behavior. Therefore, the key is to adjust the kerning output controls.
If I understand the AI CS3 scripting guide and javascript reference documents correctly, sVGAutoKerning is by default set to "false", and therefore disables automatic kerning.
The quirky part of this is that, when we manually use 'Save As' to generate an svg file, the "fewer tspan elements" checkbox is not defaulted to checked ("true").
Best, Jim