This tutorial incorporates the actions "Load Movie" and "On (Mouse Release)", so if you are not familiar with adding actions to a scene you may want to take a look at a tutorial covering that first. The effect in this tutorial should take a total of 20 minutes to do once you become comfortable with the process.
Creating Individual Letters
There are actually two SWI files that you have to create for this effect to work. This first SWI file I named 'indyletters.swi'. This SWI will be used to export each individual letter as a SWF which will be loaded in the second SWF file using the action "Load Movie".
Figures 1 and 2 show the setup that I used to create the individual
letters:
Fig 1
Fig 2
Depending on the font type and size that is used, you will have to manually adjust the vertical and horizontal of the individual letters. You can do this by selecting the layer name of the individual letters and then use your arrow keys to move the letters so that they overlap the whole word. Once you get good at this, you can manually adjust these values in the "Text" tab (see Fig 3). I used the whole word "makisupa.com" as a guideline for this, and made sure to 'hide' the text object containing this guide in all exported files by selecting frame 0 in that object line, clicking "Add Action" and then selecting "Hide" (see Fig 2.). You will also want to add a "show" action in the text layer for the letter that you won't be applying the effects to, and you will want to add a "stop" action in frame 1 of the Scene layer.
Fig 3
Adding the transform effect to the letters
In the Timeline window, select the layer used for the individual letter
that doesn't have the 'show' action in it, select Frame 3 and select
Transform from the Add Action button. Select the Transform tab in the popup
window, and set the scale to 50% (for reasons of simplicity, I chose to only
change this value in this tutorial). (see Fig.4)
Fig 4
Select the frame after this first transform effect, and on transform tab
in the subsequent popup, change the Scale value to "Resize back to 100%".
Then right-click the next frame after this second effect in the Scene layer,
select "Goto Frame" and enter 0. In the same frame, in the text layer not
used to perform the effects, right-click and select "Show". Your Timeline
tab should now look like Figure 5.
Fig 5
Exporting the letters
Export this individual letter (CTRL + E), and for a filename, I chose to use the actual letter name. If multiple letters occur (there are 2 M's in my example) the first SWF is m1.swf and the second is m2.swf. It's important to export these SWF into the same folder that you will be exporting the SWF that will be loading all these individual SWF (or be comfortable with using variable path names to point the main SWF to each SWF loaded into it.
Creating the main swf and loading the letters
Create a second SWI file, and name this groupletters.swi. This file will
do nothing more then load each of the individual letter swf that you have
already exported. In the Action tab, select "Add Action" and select "Load
Movie" from this list. Make sure that you set a different value for the
level of each movie loaded in, otherwise you'll only be able to see one of
the letters. When you are done, the Action tab sboud look like Fig 6. Export
this SWF into the same folder as each individual SWF was exported into, and
you're done!.
Fig 6