Google has come up with a new service which allows you to type text in regional languages and use them in forums/orkut/elsewhere. Google Transliteration offers an option for converting Roman characters to the literals of regional languages in India. This lets you type Hindi/Tamil/Telugu/Kannada/Malayalam words phonetically in English script and still have them appear in their correct alphabet.
http://www.google.com/transliterate/indic/Telugu
Note: This is not the same as translation — it is the sound of the words that are converted from one alphabet to the other, not their meaning.
The transliteration feature is only supported in Internet Explorer versions 6.0 and higher on Windows (preferably Windows XP), and Firefox 1.5 and higher on Windows and Linux. If you use Internet Explorer 6+ in Windows Vista/XP/2000, you should have no problems in viewing and editing Hindi text correctly. Mozilla Firefox requires support for complex text layout, otherwise it might display the Hindi text incorrectly. The support for complex text layout is usually turned off by default. Check out this wikipedia article for detailed instructions on how to add the support.
There is also a software called Baraha IME which allows you to type text directly in several regional languages wherever you want. You need not specifically copy paste the text to the required place. This software temporarily changes the windows default font so that whatever you type, is transliterated into the selected language.

