I prefer the "Character Image Object" over the "Text Blitter" object because it supports flash, but the huge drop in framerate when used in HWA makes it useless. This example shows how you can text blit without using any extensions.
Each character is stored as a single frame in an active object and in ASCII order. Starting at number 32 (!), through to 122 (z).
Text is automatically word wrapped and colour can be changed mid sentence using a prefix.
If anybody is interested, it didn't work for Del Duio because he wasn't using HWA, and RGB swapping is only allowed in HWA. This is not a problem in version 2, as colour swapping is done by switching tileset (animation).