Here is a script that will automate text blocking and alignment using bitmap text in the game engine. It has some issues, and requires the creation of an external file for usage, but it is usable for the advanced user. Check the .blend file for infos. I’ll answer what questions I can. Feel free to mess around with it. I hope someone will take what I have gleaned from this project and infuse it into the blender trunk. The game engine needs better font tools.
I currently only have the linux build of the decoder program, but the source is included, feel free to build it for your os. It uses PIL and wxPython, which are both cross-platform.