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/usr/share/doc/x-ttcidfont-conf/README.Defoma is in x-ttcidfont-conf 32+nmu2.

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The actual contents of the file can be viewed below.

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TrueType/ and CID/ subdirectories are created under
/var/lib/defoma/x-ttcidfont-conf.d/dirs. 
Symlinks to the font files and dynamically generated fonts.scale|alias
are put under these subdirectories.

What font packages have to do is:
 1) prepare Defoma hintfile for the fonts.
 2) modify the postinst and prerm as defoma-doc describes.
The .scale and .alias file, calling update-fonts-scale and
mkfontdir is no more needed, and should not appear.

Then how to specify the XLFD and aliases?
You can specify the elements of XLFD and aliases through Defoma
hintfile.
Following is the list of the hinttypes and equivalent XLFD elements 
used to specify the elements of XLFD.

NOTE: Replace space ( ) with underscore (_) if the value contains space.
X allows space in XLFD like -arphic-AR PL Mingti2L Big5-medium-, but
space is interpreted as a separater in Defoma, so things becomes complicated.

X-Foundry: fndry
X-Family: fmly
X-Weight: wght
X-Slant: slant
X-SetWidth: sWdth
X-Style: adstyl
X-PixelSize: pxlsz
X-PointSize: ptSz
X-Resolution: resx-resy
X-Spacing: spc
X-AverageWidth: avgWdth
X-RegistryEncoding: rgstry-encdng

Note that X-Resolution affects both resx and resy, and that X-RegistryEncoding
affects both rgstry and encdng.
You can specify several values for the X-RegistryEncoding and X-Spacing
hinttypes, and you must specify only one value for the others.

The spacing of XLFD is decided in the following way.

  1) If X-Spacing is not specified:
	If Width is set to Variable, the spacing becomes -p-.
	If Width is set to Fixed, the spacing becomes -c- and -m-, and which
	one is prior is decided in /etc/defoma/config/x-ttcidfont-conf.conf.
  2) If X-Spacing is specified:
	If X-Spacing contains multiple values like "X-Spacing = c m p",
	the first value (in this case 'c') is the most prior. Specified
	spacing letters (in this case c, m, and p) are all generated.

XLFDs with the most prior spacing letter are registered to defoma in xfont
category so that they'll be used in font configuration of applications.

Following is the list of the hinttypes used to specify aliases.

X-Alias:
	This hinttype takes a part of an alias of XLFD, from fndry to 
	adstyl, in XLFD syntax. The value for this hinttyle goes like:
	 -default-kai-medium-r-normal-

X-SimpleAlias:
	This hinttype specifies a non-XLFD alias. The value for this 
	hinttype goes like: lucidasans-bold

X-ElementAlias:
	This hinttype specifies aliases for each of the XLFD elements.
	For example, if you want an alias like default as fndry, kai
	as family and 72 as resx and resy, the value becomes:
	foundry=default:family=kai:resx=72:resy=72
	The syntax is <xlfd-element>=<value>[:<xlfd-element>=<value>:[...]]
	Allowed <xlfd-element> are: foundry, family, weight, slant, setwidth,
	style, pixel, point, resx, resy, spacing, avwsidth, encoding.

There're some xtt-specific issues.
First, X-Alias and X-SimpleAlias are ignored.
Second, -medium-r-, -medium-i-, -medium-ri-, -medium-o-, -medium-ro-, 
-bold-r-, -bold-i-, -bold-ri-, -bold-o-, -bold-ro- are created unless 
Transform hinttype is set to NotBoldize or NotSlant.
The default angle for 'o' and 'ro' is 0.2 and -0.2 respectively, and
that for 'i' and 'ri' is 0.4 and -0.4 respectively. You can control
its behavior by TTCap hinttype.

TTCap hinttype takes the following values.

halfwidth-sw=<value> .. specifies the sw value for halfwidth glyphs.
halfwidth-bw=<value> .. specifies the bw value for halfwidth glyphs.
italic-angle=<value> .. specifies the ai value for -i- and -ri-.
oblique-angle=<value> .. specifies the ai value for -o- and -ro-.
bold-string=<value> .. specifies the wght XLFD element for bold.
no-bold .. do not generate bold.
no-italic .. do not generate -i-.
no-ritalic .. do not generate -ri-.
no-oblique .. do not generate -o-.
no-roblique .. do not generate -ro-.