Hey Dean - I like the current state it's in (the font was "shangri la", btw) I wasn't sure about it at first, but after seeing it, I think it really fits the whimsical slant on the illustration & name.
The font IS separate - as in - not connected, but it's NOT "live". (it's been converted to outline form and is not editable with a keyboard) I did adjust the individual leading (moving them up or down) as well as PARTS of the letters (i.e. The ascender of the "L", just the top arm of the "E", one leg of the "H", etc.) That helped it to kern together a little better. With display types being so unique / easily recognizable, I always alter them so that someone doesn't end up with a seemingly similar wordmark. Also, with the way they are laid out (on the arch with the ends at 90 degrees) it requires that they be converted to outlines.
I can make it less bold, but - again - not with the typing tool. I'd basically shave off a point or two to make it feel thinner - and maybe space it out a little bit more. Pretty easy to do though.
I can look at the font again and see if I can loosen the kerning a bit - perhaps that will help at really small application. Another alternative would be to just have a separate "small use" black & white version with a different font that's custom-made for small usage. We could discuss that later - wouldn't be much work at all though.
hope that helps - any other questions you have - or if you need clarification (I used a lot of parentheticals in this response!) just let me know :)