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I'm a rookie at using Adobe Illustrator so this is possiably user error, but I just noticed that if a create a 3 inch height letter, for example 'A' after I use the create outline the vector size is much smaller. I have been using inkscape and when converting text (object to path) the scaling is correct. Any suggestions or instructions would be great.. I know I could trace a text font but to me that is not resource friendly.
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In the Character panel flyout menu you can enable Show Font Height Options.
Play around a bit with the options and you should get what you want.
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Adding to Kurt's advice, be advised some parts of letters often dip below the baseline or rise above the cap height line. If you set font height options to size letters according to capital letter height you'll see squared off letters such as "E" will measure out as expected but letters like "O" will be slightly bigger. Illustrator defaults to sizing letters according to Em height, which is the tradition for print-based design.
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hydrasport,
In order to directly set the actual height of the text, as measured between the highest point and tha lowest point on the letters collectively (, you can:
1) Tick Use Preview Bounds in Edit>Preferences>General;
2) Select the live Type with the (normal) Selection Tool and Effect>Path>Outline Object;
3) Set the desired height by inserting it in the H box in the Transform palette.
1) and 2) will give you a Bounding Box that fits tightly round the live Type, and 3) will change it to the desired value; tou can see the change of the font size to a higher value in the Character palette.
After 3), just reverse 1) and 2).
That will show the size og the Type normally by font size again, and with no unwanted strengenesses when you conitnue working with other objects.