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5

While you may want microtype's features in running text, you don't want them in an algorithm, in particular letter spacing. \documentclass{article} \usepackage{amsmath} \usepackage{algorithm} \usepackage[noend]{algpseudocode} \usepackage[activate=true,final,tracking=true,kerning=true,spacing=true]{microtype} \usepackage{etoolbox} ...

1

Here I introduce the routine \spaceout[added space]{string} to indicate text to be spaced out. The optional argument can specify the extra space added between each letter of the argument (here I default it to 0.5pt). Spaces are properly parsed in the argument, using similar logic to my answer at How to bold custom calligraphic text. In my MWE here, I ...

4

The asterisk in \SetTracking{encoding=*, shape=sc}{50} is a placeholder that stands for "default". While for the \Declare... commands the translation of this placeholder takes place at the end of the preamble, for the \Set... commands, it takes places immediately. In your example, this results in the asterisk being translated to OT1, because inputenc -- ...

2

OK, the issue seems to be solved for me. First of all many thank to @UlrikeFischer and @DavidCarlisle for helping me understand the problem. As can be seen in the Update1 section of the question, the system complains for the lack of some font, however that is not the case. I checked it @ C:\Program Files\MiKTeX 2.9\fonts\tfm\mathdesign\mdbch and all the ...

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