1. You can't embed the hindi font (at least not a modern Unicode compliant one.)
2. It is kinda possible, but you must be lucky!
There are so many problems with working with Hindi in Flash that I'm not even sure where to begin. From Flash 7 through Flash 9 there were some tricks that worked fairly well, but with the introduction of the Intel Macs the player started breaking even those on sites that had worked up 'til then.
So if you know that none of your audience is on a Mac (or that if they are it is a PPC Mac running early version of plugin 9 or EARLIER) then okay.
The next problem is that you can't embed the fonts or at least Unicode compliant fonts. So your choice is to go with some strange legacy font that looks right, but behind the scenes isn't properly spelling the words, but can be embedded. Or to go with a proper unicode font that can't and just hope that the end user has the proper font installed.
The next problem is that if you do go with unicode, the Flash text engine stops understanding that lines should be broken at the spaces between words. So you will need to write some code to break multiline text.
I don't know anyway to get static text.
Flash 10 and the new Text Framework is supposed to support Hindi, but in the Beta it is broken and I can't get any answers about whether they will be able to fix it. So I'm not hopeful. Maybe Flash 11?
Post back with any more details you think are relevant after you read this and I will see if I can offer any guidance.
Here is something that I have observed about Devanagari content and Unicode fonts in Flash.
Operating System: Windows XP service pack 3
Application: Flash CS3 and above
Font type: Unicode
Font: Arial Unicode MS or any other supported font
Character Support: Devenagari Supported
Font Embedded: Yes
Content Format: Unicode format, UTF 8 or UTF 16
The content is loaded from outside Flash in a dynamic text filed placed in the file. A new instance of the supported Unicode font is created in Flash library and the same is applied to the text filed (fontX*). The required Devanagari characters are embedded.
When the embedFonts is set to false, everything appears proper, no issues. It is because the font is already available in the operating system. However, this may not be available on all users’ computer hence it has to be embedded in the file. Now when the embedFonts is set to true the problem starts.
First of all, the text filed starts showing extra blank spaces in between the characters. This happens for specific characters. I think it happens due to Invisible Control Characters associated with certain glyphs. Secondly, the half character forms appear as full characters with “्” following each such character.
I think it is not just Flash issue but also associated with operating system or operating system plays some role in it. Especially in case of Windows XP, when the “Supplemental language support” under “Regional and Language Support” is installed the above problem occurs; however, if it is uninstalled, the problem partially gets resolved. If the regional language support is uninstalled, it is noticed that the extra unnecessary blank spaces disappear; however, the half characters still appear as full with “्” under each such character.
I believe the regional language support is by-default provided on Windows 7. And if the Flash file is published on Windows 7 both the issues occur.
Hence I think, Operating System is playing some role in embedding the font in Flash but not sure how exactly it takes place. Let me know your thoughts.
Here is some Devanagri content for your reference. This may appear proper in browser window but not in Flash when the embedFonts is set to true.
Sample content: कृपया कॅल्क्युलेटर क्लिक