Tracking creates an even spacing between multiple characters in a line
of text, widening it out, or tightening it up.

Kerning adjusts the width of the space between two characters in a line
of text.

Generally, you first track your text, and then make kerning adjustments.
1. Type out a line of text and choose a font. Look closely and notice
that the spaces between the letters dont really look uniform. If
youre not used to kerning type, you might not notice much, but
trust me: Art Directors and Designers that work with type day in and day
out WILL notice, and unkerned text will scream unprofessional
to them. Luckily, its easy to fix.
2. Open the Characters palette (Type>Character), and notice the two
input boxes at the bottom. (Illustration below). These are the Kerning
(left) & Tracking (right) controls.

3. To track your text, select it and either a) enter values in the tracking
input field, b) choose a preset number from the pulldown options, c) click
in the input field and use the Right/Left Arrow keys, d) Shift + Command
+ Left/Right Bracket Keys, or e) hold down the Option key while using
the Left/Right Arrow keys.
(Yes, thats a lot of different ways to do the same thing). Higher
values widen out the text, lower/negative values pull it closer together.
(the two examples directly below) The tracking value is applied to the
right side of the selected characters.


4. To adjust kerning, use the type tool (T) to click between the two
characters that you want to adjust the space between. Now, either a) enter
a value in the kerning input field, b) choose one of the pre-set values
from the pull-down menu, c) click in the input box and use the Up/Down
Arrow keys to move through values, d) use Option+Left/Right Arrow keys,
or e) Shift + Command + Left/Right Bracket keys. Like tracking, higher
values will move characters further apart, while lower/negative values
will move them closer together. (Note that while the preset options are
helpful to get a general idea of your kerning values, youre better
of making precise adjustments yourself.)
5. Many fonts have auto-kerning information built in. Choose Auto
in the kerning box to use the values that the font designer has included
with the font. Auto kerning usually looks pretty good, but again, you
may want to use it as a starting point and fine tune it.
6. If you find that the default Illustrator kerning and tracking values
are not precise enough for you, you can enter new measurement values in
Preferences>Type & Auto Tracing. Illustrator is set to make adjustments
at 20/1000 of an em per click but you can lower it for more control.

An em is a unit of measurement thats used with typefaces (originally
based on the width of the letter M of the particular font). The em measurement
of any given font is relative to the particular font size. So unlike a
set unit of measurement like inches, which is always the same, an em width
changes when you change the size or face of your text.
7. Getting used to making kerning adjustments takes some practice. Its
a matter of taste in how you choose to kern characters. Experiment with
loose tracking & kerning (Wide letter spacing) and tight tracking
& kerning (close letter spacing). Youll quickly begin to get
a feel for how tiny adjustments can change the look and feel of your titles
and headlines.

Hope this has helped.