This article explains how to get the outline as lines and curves of windows fonts. This outline can then be used to generate polygons for rendering the letters.
The FreeType Project
This open source programming library provides a small portable solution for rasterizing anti-aliased characters from fonts based on glyphs like TrueType or OpenType.
Real-Time Texture-Mapped Vector Glyphs
2006 - Zheng Qin, Michael D. McCool, and Craig S. Kaplan
Texts Rasterization Exposures
July, 2007 - Maxim Shemanarev
A detailed paper on disadvantages of the current ways of rendering texts done in Windows, Linux, and Mac OS X, as well as a proposal to an improved way.
Design and Implementation of a Win32 Text Editor
Shows how to write unicode text with uniscribe, which is much more powerful than TextOutW.
Improved Alpha-Tested Magnification for Vector Textures and Special Effects
2007 - Chris Green
Shows how to use distance field in texture to render alias free 2D decals.