Sorry if I am repeating, but I do not seem to see my post here. Does anybody know of a Malayalam language package. I am working on a Mac running Leopard.
This thread from TUGIndia Mailing list should help you in the right direction. And, here are a couple of references from a Google search:
Typesetting Indic languages is still undergoing a lot of development. For instance, in case of Tamil language, see this TeX.SX thread.