Oh, I've been doing the same myself with Inkscape... I 'tried' Illustrator but I have issues with it. I don't really connect with it, at least for now. In Inkscape I was able to apply drop shadows (filters) of my choice to the font version, and best of all -- it applies in real time to text changes.
It's hard to change the letter spacing though. In both software, I have to click the text tool, click between two letters and change the spacing manually in the toolbox. In Illustrator, I can't move the text itself (or at the very least didn't get to find the feature to do so). I'll probably be going for Inkscape in the end.
Anyway, these vector program thingies... They're cool. Way more powerful than PSP7. But also way harder to use... :-/
Still haven't found the 'right' balance between beautiful and readable, for now. Looking into other fonts, but even PT Sans doesn't look as 'good' as Segoe UI Light when it comes to logo-demoing.