David: I would say definitely YES it is a font problem.

I farted around with my fonts when I installed
Suitcase and screwed LW up totally!

I don't use FontReserve, so I don't know how it is configured, but pop in your Panther install CD and restore the fonts in your System/Library/Fonts to what they are on the install CD.

LW doesn't seem to mind if you add or delete fonts in the Library/Fonts or User/blahblah... but those System fonts have to stay.

This is based on my recent experience, so YMMV.