Well, I managed it on my own. Sorry to bother. I had been working at it a few days and just solved it.
Sample code:
<head>
<link href='http://fonts.googleapis.com/css?family=Lobster+Two&v1' rel='stylesheet' type='text/css'>
<script type="text/javascript" src="/js/paper.js"></script>
<script type="text/paperscript" canvas="canvas">
var text = new PointText(new Point(50, 50));
text.content = 'Hello world.';
text.characterStyle = {
fontSize: 50,
font: 'Lobster Two',
fillColor: 'black',
};
</script>
<style type="text/css">
div{
font-family: 'Lobster Two';
}
</style>
</head>
<body>
<div> </div>
<canvas id="canvas" resize keepalive="true"></canvas>
</body>
The key is that to apply the @font-face, you have to style something first (in this case, a space).
Hope this helps someone out!
Ben