I was having a good amount of trouble getting externally loaded text (txt) to display properly when I used HTML tags (bold, italic, etc.), regardless of what other solutions I used in this forum. So when I found this information, I thought it might be useful to others searching the forum.
Problem:
HTML enabled text fields fail to display formatted text.
Reason:
When embedding a font, Flash does not include the entire font family automatically. Only the plain font is embedded without the bold and italic variants. Because of this, HTML formatting that uses bold or italic formatting may not display.
Solution:
If an HTML formatted text field uses a font that is not resident on the viewer’s machine, then that font must be embedded in the SWF to properly display the text. If multiple styles of the font are used in the HTML formatting, then it’s necessary to add a dynamic text field to “manage” the embedding of the entire font family. As long as the font is embedded in one text field, the rest of the movie can use it.