You need to use the Express Tools explode text command. It comes with 2005 and 2006, not sure about 2004. It was sold seperately prior to that.
If you don't have the express tools, dowload OutlineArt from here: http://www.freefirestudio.com/outline.htm
Although it's an extra step, it's actually a little easier to work with. The Express Tools text explode still needs some cleaning up after, the Outline Art text is ready to go, you just have to load the .dxf into AutoCAD.
Almost forgot, you won't get any arcs using either method, both will give you polylines composed of straight segments only.


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