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Using \caps from the soul package with user-defined language shorthands generates an error. However, it works fine with language shorthands defined by babel itself, e.g. by using \usepackage[ngerman]{babel}.
Example:
\documentclass{article}
\usepackage[english]{babel}
\useshorthands{"}
\defineshorthand{"~}{\textormath{\leavevmode\hbox{-}}{-}}
\usepackage{soul}
\begin{document}
\caps{LS"~2}
\end{document}
soul performs a little test to see if the german language has been loaded, so that the shorthand " is taken into account when parsing the string. Just add to the preamble:
\newcommand{\mdqoff}{}
\usepackage[ngerman,english]{babel} solves the problem.
– Aydin
Mar 15 '13 at 8:44
\caps, and use a real small caps font instead? This might even look better. – mafp Mar 14 '13 at 14:20\capsto increase spacing with normal capitals or small caps font. – Aydin Mar 15 '13 at 8:38microtype, if this is an option for you. – mafp Mar 15 '13 at 8:49