There are quite a few reports of people having trouble using MTFI with newer versions of MiKTeX. For me, this is a problem finding ttf2tfm on MiKTeX 2.7 with Windows XP SP 3. This is not a bug with paths containing spaces, I copies the whole MiKTeX directory in a path without spaces, it still does not work. I have verified the file is there and the MiKTeX base path is correct, so your method of...
