I saw another custom font solution today: typeface
Instead of creating images or using flash just to show your site’s graphic text in the font you want, you can use typeface.js and write in plain HTML and CSS, just as if your visitors had the font installed locally.
A while ago, I blogged about the SIFR 3. And there are many other solutions to render text in fonts that your client’s machine does not have. For example, generating the text as an image. BTW wasn’t there a wordpress plugin that does this? I wasn’t able to find it in my quick search. Can someone enlighten me?
One thing I hate about all these solutions is that you may no longer highlight the text in order to copy its content in all the browsers I know. It just bugs me to no end when expected browser behaviors get changed because you want some fancy fonts for your site.
I wish more browsers would implement the @font-face css rule so maybe then we can get around this issue?
Pure-Essence.Net 
I display my titles as graphics using a php script and uploading the ttf file – similar to typeface except it’s not javascript. I found it in the Mountain Dawn theme in the WP directory.
What I don’t like about images is, as you said, inability to highlight text. And what I don’t like about JavaScript is that not everybody (albeit most people) has JS enabled on their browser. Sometimes I disable JS when I’m browsing to just because it loads pages faster. So then I worry about how ugly my site may look when the JS is gone and it returns to a default font.
Thing with @font-face would be that there will still be people using old browsers like IE6! :grr: