@air2gnd
Yes, ttf2cxf will work converting TTF fonts to CXF for use with F-Engrave. In fact F-Engrave is distributed with a modified version of that program (ttf2cxf_stream). The modification allows f-engrave to convert the TTF fonts to CXF on the fly (so as the use you can just select a TTF font and use it in F-Engrave). If you are using the windows executable distribution of F-Engrave this will all work with not additional setup. If you are working under Linux you will need to install the ttf2cxf_stream program.
F-Engrave Setup
Additionally if you are looking to just engrave single line fonts you might want to download these stick fonts:
CamBam_Fonts and
Q-CAD Fonts
You also asked about text spacing to separate the lines. There is a Line Spacing option on the main window. Is that what you were looking for?
Good Luck,
Scorch