Typography: A world of it's own

I recently got drawn into the wonderful and strange world of typography, of which I am completely inexperienced and in awe of. As such, from time to time i'll try and post some of my study in the area. For example, which looks better?

This:

Or this?:

The difference is subtle, but the first image is a sign I shot on the street this morning, and the second is with the kerning adjusted on the "FE" pair. Now, being no expert on the subject, I may have it horribly wrong, but now that I am noticing type everywhere, this popped up immediately in my "looks a bit wrong" alarm centre.

Feel free to educate me. :)