I don't think you can bind directly to rich text; I've always done it in script. Take a look at the following post:
I was about to post the same.
Thanks for the help and I am extremely sorry for the late reply as I was carried away by the other project priorities here.
My Goal: I am building a proof of concept .Net App to find whether we can replace the exisiting Crystal Reports Templates with Adobe LiveCycle Output Service based one to generates the final invoice PDF from XML data. The idea is to bind XML data to with XDP form and render the final Invoice PDF(able to render the raw data other than Richtext). I don't know whether all features Crystal Reports Templates are possible with LC Output but right now I am struggling to render Richtext through LC OutPut Service and proceed further.
Since alert messages don't work when rendering using Output, you can check the lc_server.out log file on the server to see if there were any script errors during form rendering.