I formatted the internal memory, and the font select dialog worked properly. I installed my fonts, and it was broken again. I began installing my fonts set by set and discovered the PB font select dialog failed when I installed webcore fonts.
. I formatted again, installed everything except webcore, and the font dialog works perfectly.
Webcore includes CAMBRIA.TTC; I renamed that to CAMBRIA.TTF but that did not solve the problem. That's the only troubleshooting I did for the webcore fontset. I'm just going to skip that set.
The Droid fontset
works well and is beautiful on this device.
Thanks to everyone for their suggestions!