in photoshop under the "character" properties, there is a language selection. i dont know if that would help by selecting 'arabic' or not. but maybe also adjusting your letter kerning?
Yeah I just noticed the language settings and this is where I believe the problem is as Arabic isn't there. I think it needs a new install of photoshop or illustrator in the arabic version. I'll keep looking though as I notice that there are some plugins avaliable but not sure if they work and they are also quite expensive.
well Sulcalibur i will like to say "mar7ab" and as a person from Palestine i understand what your going through but the only thing i can tell you is there is a special version for Arabic (ME) or Middle East there is a one for every version on the market except the cs3 which will probably take a year to come out after its first release