Sorry for the delayed response here, it’s been busy, and meanwhile I’m sure you’ve found workarounds for all these issues, but still, here goes:
Not really, when FormMagic clicks into action, it will try to reapply whatever font is being used in InDesign.
The best would be to actually use the cursive font you want to use, in InDesign. If you do that, then when the teacher opens the book in Acrobat, if they have the font actually installed on their system*, everything will show up correctly.
* They only need the font actually installed on their own system for these special fonts that forbid embedding, as I explained in the previous post. Most fonts are embedded correctly and show up correctly even if they don’t have them installed on their system.
No, that is not necessary. Reader is fine.
The conclusion: It should in fact be possible to do what you want. The teacher simply needs the free Adobe Reader installed on his or her computer, and they should install the font on their computer as well. Since the font is free, this shouldn’t be a problem: You can distribute the font with the PDF as a separate file, with instructions that they should install it before viewing the PDF.