Argh, this is addictive.

One suggestion for improvement: It would be nice if I could hit escape (or click outside of the text) to get rid of the cyan highlight on the letter. Color can change the perceived size of a shape, and when you're at the level of tweaking by pixels, it can make a difference.

The problem with this game is that you can only move the inside letters. Which means that the default tracking (often crappy) of the sample words can't be changed. In other words, you're polishing a turd.