Almost all word processors now support unicode - with the notable exceptions of Word Perfect on the PC and Word on the Mac before Word 2004. Unicode fonts are now becoming standard, and they are easy to use with the free Tyndale Unicode Font Kit.
Available in TrueType (.TTF) format for Windows & Mac.
Download free TrueType Ancient-Modern Hebrew & Yiddish Fonts. Search from a wide range of typography fonts. Hebrew available in Windows and Mac OS X version.