I just stumbled across this rather useful OpenType font editor. Called typelight, there are freeware and business licensing options available and you should certainly consider it before forking out for something like Fontographer.
I cobbled this Webcam effect together for no other reason than creative curiosity – a digital hall of mirrors thing, I suppose. Best viewed on your laptop, since it requires Flash and a Webcam…
And for the techies, here’s the source code (zipped FLA).
I started trying to find useful things to do with face detection, but with limited success. I tried using the Libspark Haar Cascades implementation of face detection with Papervision3D to create a sort of head tracking effect, but it’s a little flaky – partly because of poor tracking accuracy and partly because it’s too CPU intensive. You can view it on its own page here.