Creating a dotted line stroke in Illustrator
First, create a new document in Illustrator. I created one 1024 x 768. Then, select a typeface that you want to use and create a nice large word or couple of words. For our purposes, I am taking away the fill to see the effect much better.
Then, go to your stroke palette and give your type the stroke size that you want. I chose a nice blue color. Then, at the bottom, there are options for your stroke. Check the “dashed” box, and the different boxes control the length of the dashes and the spacing between them. Dash controls the length of the dash and gap controls the spacing between each dash.