Is there any free font creation software out there?

Creating a "font" is no small job. The font needs to be designed so it can be readable and look nice in all sizes from very small the book title size and in standard, italic and bold and it needs to render at both screen and print resolution. The people at Adobe did this work by hand going as far as to hand edit the postscript files with a text editor.

Don Knuth wrote a program to create fonts from a description of the shapes and some parameters. He used his software to create "Computer Modern" which is now the standard for mathematical typesetting. Look at "metafont".
http://www.math.utah.edu/~beebe/fonts/metafont.html

Yes metafont and the entire TeX system runs on the mac. TeX is the 800
gorilla of computer typesetting. It is NOT interned for the casual user. The
Fink project makes getting and installing Tex easy.

 

If you want a big selection of free fonts, check out www.acidfonts.com