Here's a small example I made. It has two fonts in it: smallfont and smallmono. "smallfont" is the same as "smallmono", except it's been cut up into individual font character images. Rename the "smallmono" folder to "smallfont" and you'll see what I'm talking about.
EDIT: Here's a screenshot of the monospace font, and the variable-width version ingame, as well as the font.inf file from the monospace font:
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CellSize 5, 10
Kerning 1
Scale 2
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Kerning 1
Scale 2