Bellbram, did you get the problem solved? I just followed Flash's suggestion and downloaded the update (I was at 6.2.4 also, and for some unknown reason Software Update never kicked in...despite Apple's "next time use Software Update" after I manually downloaded the 6.2.7 update!!!!)
Turns out, the font display option was in 6.2.4 too - (I have another drive with 6.2.4 installed, so I went back and checked) though after I installed the update I STILL couldn't find it at first and I think it's because RHP's directions are missing a step.
When you open the AppleWorks preferences window, click on Preferences->General. Then, use the drop down button menu which will say "Topic" (and probably show "Text" as the topic) - click on the button (Text) and you will be presented with another series of options. Click on "General" and voila. You'll have a screen wtih three options in the box, one of which is Options - Font Menu in Actual Fonts. Check the box. Then click on the "make default" button at the bottom of the box and you're set.
I think that the confusing thing is that it's under the "General" section - I fully expected it to be under the "Text" section, so didn't even click on the "General" option the first time 'round with 6.2.4 - but it's there too!
Glad I saw this thread...it was one of those nagging little "didn't AW used to do....??" thoughts that drifted through now and again, but because I tend to use Word much more often, I'd never bothered to investigate further. However, the kids use AW more, so it's good to know!