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The free Microsoft WEFT tool for font embedding in CSS works great, and it's plenty fast on broadband. If you use the option to embed only the characters in the font that you actually use, the partial-font can well be smaller than an image for a large title.
BUT ... the new security in IE 7 beta 2, when it finds a WEFT downloadable font, always stops displaying your page and puts up a dialog saying something like: "This webpage is attempting to download a font; this action is usually not a threat, but it can be dangerous to your computer; do you want to allow this font download? [YES] [NO]"
So, back to images and standard fonts. It's hard to imagine any font that would be worth putting all users through the security check.