I couldn't get it to work either. I tested with a full text fade and that was fine, so it's definitely the character tweening that is the problem.
You can also see in my code that I applied the tween to 50 characters when there are only 20 and it didn't throw an error. This would suggest that the method behind this command hasn't been implemented.
setVirtualResolution(640,480)
txt = CreateText("Tweening a Character")
setTextSize(txt,24)
tw2 = CreateTweenText(5)
setTweenTextAlpha(tw2,255,0,TweenEaseOut1())
tw = CreateTweenchar(10.0)
setTweenCharAlpha(tw,255,0,TweenEaseOut1())
setTweenCharAngle(tw,0,179,TweenEaseOut1())
for n = 1 to 50
playTweenChar(tw,txt,n,n*0.5)
next n
PlayTweenText(tw2,txt,0)
do
UpdateAllTweens(GetFrameTime())
sync()
loop
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