Progress is reported on a 25 MeV injector racetrack microtron for a 10 ¿m radiation free electron laser (TEUFEL project). The accelerator exhibits transverse focusing in 180° inhomogeneous two-sector dipole magnets which are slightly rotated with respect to each other in the bending plane. This provides closed orbits, isochronism and a large transverse acceptance. Details on this unconventional microtron focusing system will be given. An analytical treatment, based on conformal mapping, of the field near pole boundaries and at the hill-valley boundaries in the microtron dipole is compared with Poisson calculated results and with field measurements. The design of a model accelerating cavity is presented together with field measurements based on the perturbation ball method.