I am trying to use the microtype package as illustrated in this page: http://texblog.net/latex-archive/layout/pdflatex-microtype/.
But I am getting this output instead:

So any ideas why this is happening?
Here is the code as requested:
\documentclass[a4paper,10pt]{article}
\usepackage[english]{babel}
\usepackage{blindtext}
\usepackage{microtype}
\begin{document}
\begin{minipage}{3.7cm}
\blindtext
\end{minipage}
\end{document}
EDIT1: I just realize that there are some small literal differences between the blindtext output that I got and the blog's one. For example instead of what in the third line, there is a how. I am going to change my blindtext to match the blog's copy to see if there is some improvement.
EDIT2: Here are the result after I enabled \frenchspacing and made the blindtext corrections. Note that in the blog's example the "a" should be one line above its current position.

EDIT3: I updated my microtype package to version 2.5 beta-07 but I got no drastic changes.
\textls[-9]{\blindtext}you will get it away. But then later you will get more white space. For such narrow columns it is always better to use\raggedright(or for special cases\raggedleft) – and much, much better to load the packageragged2eand use then\RaggedRight(or\RaggedLeft). – Speravir Jan 16 at 3:55microtypedo you use? Is there any warning in the.logfile? Finally, which version ofpdflatexare you using? – mafp Jan 16 at 10:44pdflatexversion 3.1415926-2.4-1.40.13 andmicrotypeversion 2.4. I am not sure (since i just started to use Latex) but I didn't notice anything unnusual in the.logfile – Pedro Dreyer Jan 16 at 11:27microtype-2.5-beta07, but since you have a different text, this probably is the reason. – mafp Jan 16 at 11:58\frenchspacingLaTeX will insert a normal space after the period. When I enabled\frenchspacingand compiled your example it solved the probelm. – Marc van Dongen Jan 16 at 12:08