While you can scan in and clean up a hand drawn font image in PSP or create the image digitally, you need to export the image into a dedicated font creation application to create the actual typeface.
To create a font, you need to use an application like Fontographer, FontLab, ScanFont, Softy or CorelDraw, which has a True Type export feature. These applications allow you to set the nodes/kerning etc.
If you want an example of someone who uses PSP to create fonts, then exports them to Fontographer, check out PizzaDude: http://hjem.get2net.dk/jfischer/