I have created a font/sprite sheet to using ttf2bmp:



What I can't understand is how I would draw a quad with a "1" and "0" from the sprite sheet (bmp).

I can draw a quad that has the whole sprite sheet as its texture, but I can't figure out how to take 2 separate locations on the sprite sheet and combine them to make a texture that is "10".

Can someone please help?

Thank you.

You can use one of the SpriteBatch's Draw methods.

SpriteBatch.Draw (Texture2D texture, Rectangle dest, Nullable<Rectangle> source, Color color)
http://msdn.microsoft.com/en-us/library/bb196419.aspx

This allows you to specify both the destination rectangle (where you draw on the screen) the source rectangle (what part of the texture you draw).

So if character "1" is at pixel (5, 20) and is 16 pixels in size, and "0" is at (30, 20) and 8 pixels wide you can do this:

Basically you create a source Rectangle for each character on your sheet and use than to draw your texture.

I was thinking about drawing it in any location in a 3D world.  In this case would I have to render to texture using different uv coordinates from the sprite sheet and then display that texture?

Yes, that's probably the simplest way to do it. 
Create a render target, and then draw to it like I posted above, then just use that texture when you draw your object.