for 1, embedFonts is a property of a textField, not a textFormat. So that would need to go on _root.clip.sText. Same applies to textColor, though textFormats do have their own color property, its just color though, not textColor:
newFont.color = 0xFFFFFF
Also, when using a font, you should name it by its actual font name, and not by its symbol name which I assume you’re doing with “Font 1” ? And if you don’t have a symbol, make one, a font symbol that represents the font you want to use. Furthermore, since you’re using actionscript to define this text, you would want to change the linkage properties of the font symbol so that it is exported for actionscript and within the first frame. This way, Flash will know enough to use it with your dynamically created textfield.
Put that all together and your text should fade fine.
I did exactly what you described. Everything works except for the alpha. I think it has something to do with the fact that the textfield is a dynamic field when using the createTextField() command. Cause the fact is that it does work on static textfields. So is there maybe a possibility to convert the dynamic textfield to a static textfield through actionscript?
you could break apart (ctrl+B) that text, than convert it into a symbol. for the first keyframe setProperty,alpha,100. in the last keyrame you set it at 50 (motion Twain).