What is T2embed.dll?
T2embed.dll file is a library that renders TrueType fonts on your computer.
How can a font be a source of infection?
Fonts are loaded into memory. For the font renderer to work it clearly has to read input (i.e. the text/font), so the only thing you have to do is craft some text/font/bytestream that leads to some buffer/heap overflow or whatever in the renderer, which then allows you to execute arbitrary code. There is apparently a security hole in the font rendering library that allows things it loads into memory to execute code.