2011/3/19 Aditya Mahajan <adityam@umich.edu>

\definestartstop
[FancyFirstLetter]
[style={\switchtobodyfont[big]\bf},
color=red]

\def\FancyUppercase#1%
{\dostartFancyUppercase#1\dostopFancyUppercase}

\def\dostartFancyUppercase#1#2\dostopFancyUppercase
{\FancyFirstLetter{#1}#2}

\def\Acronym#1%
{\dostartAcronym#1 \dostopAcronym}

\def\dostartAcronym#1 #2\dostopAcronym
{\doifsomething{#1}
{\FancyUppercase{#1} %space
\dostartAcronym#2 \dostopAcronym}}

Almost. dostartAcronym needs a blanco line to put the words under
each-other:

At the moment I have I my document:

Better to use an explicit \blank (A blank space is equal to \par, and can give funny results when you change indenting)

Is not the same. With a blank line the next word begins on a new line. When using \blank there is also vertical whitespace between the words. But I think I like it. So that is good. ;-}