I can now compile all Hebrew documents with both ps2pdf and pdflatex. When I compile with luatex, I get the following error:
<< To avoid this error message, run TeX--XeT or e-TeX engine instead of regular TeX. ! Right-to-Left Support Error: use TeX--XeT or e-TeX engine. l.77 engine} >> I will set pdflatex as the default output format, unless someone objects. Scott