I was working on a menu system, and I needed some dynamic fonts. Well, it just so happened that I need back font, and for some reason vertex groups are not assigning the proper color in the GE. FTBlender will make a font image from a TTF font, but the resulting image uses a black background. This forces Blender to use the black as transparency, which really doesn’t make sense given that its a TGA file. So, since vertex paint isn’t working, I found that if you use the TGA for what it’s intended for by creating a transparent background, you can set the font to any color you want (including black). You just need to leave the top portion alone as a black and white strip of dotted information.
Cool 
color fonts rock