I never ran into the problem before of using elements type adjustments on a type layer. However, it doesn't work in elements because it doesn't work in Photoshop either -- I just tried it in CS2. Apparently you can't use Faux settings if you are planning to convert to shapes. To some extent this makes sense as Adobe will probably be relying on the font makeup to define the vectors.
What you need is not a better tool (one doesn't exist), but a better font. You have one of two choices:
1. locate a font on the web that can be used as a substitute (there may be problems with certain fonts in PE2, but there are also many libraries of free fonts, like this one:
http://www.freemacfonts.com/efonts.htm ).
2. Open a new image, copy the type, make it obscenely large (say 100 times the size you need it), rasterize the type, Make the type into a selection (command/ctrl and click the type layer), and convert the selection to a shape. Once you are done, you can resize the image, and the type will resize with it.
OK?