Several things that you should do to start.
Note that Context Help is available at most points. Either press Using Search for Help on .. under Help and find the topic 'Help in Font Maker'. This will tell you how to use the exclusive 'Copy Topic' feature to compile your own Help hardcopy.
Run through the Tutorial on producing TrueType fonts and take note of TrueType Rules.
Set up for Read by selecting Import from the main menu, then Xerox fonts. Click File/Open to open the Xerox font (.FNT). When opened select Read9700. FM will assess the point size as understood by conventional means. A 9700 fonts contains parameters for point size but this is in dots not real point size.
The fonts will be checked for any extra wide characters based on their HMI (escapement). A font is deemed to be extra wide if the HMI for a character is more than 1.25 the height or is greater than 399. If the crop option is selected then all characters will be cropped if found to be excessive.
The resultant file will be saved as a .DVL (internal format).
Converting to TrueType
The DVL file must be converted to the TBF (internal format). Using the TrueType option on the front menu and then Draw from DVL. Select File and choose New to start a new TBF file, then with a click on Template open the DVL file, you will be asked for a scale, this is for possible adjustment, leave at 100% for the moment. Finally select a character with NewCharacter.
You will now see the Design screen with the bitmap font superimposed, together with blue margins set according the escapement on Read. You have two options. You can trace the character using the mouse in exactly the same as the Vector Design in the Tutorial. Or you can use Auto-Trace, position the mouse cursor just above a line, or contour, to be Traced and press 'T'. Make sure that you Trace every contour, an 'O' has two, one inside and one outside. Note the TrueType Rules, the outside MUST go clockwise and the inside MUST go anti-clockwise. The Auto-Trace always starts left to right so placing the cursor just above a line it will be correct.
If a font is reverse, white on black, then the procedure is much the same. Ensure that the outline is copied, the Black bit and the the inside contours, don't miss little things like the top triangle of the A. Also ensure that the margins are set correctly, as any unwanted gaps will show as white lines between the letters. As a guide the two margins should be set so that they exactly under the edges of the character, if the are then the blue margins will be obscured by the red character outline.
Consider replacing the dot, or dithered, type of shading with hatched. make it regular so that two characters side by side will match.
Correcting a TBF
The trace will have produced a TBF font with two possible problems. It may have too many dots, if it can't identify a straight line it has to do this. Vertical and horizontal lines should be OK as will 45 degree and most 30 and 60. This can be done with the Delete button, or there is a hot key Next, the positions will set as ON line, making curves fron short straight lines. Making position OFF curve will create curves that will be scalable, similar to Bezier curves. There is a button for this too, but there is another hot key for this