line breaks and wrapping incorrect on hebrew+english text

I played around with your example a little, and removed the explicit line placement you added, and have this (see below). It works as expected if you consider English the dominant language. If you wanted it to assume Hebrew instead, you should set the direction to RTL instead of LTR. Please let me know if this works for you.

Thanks!

package
{
    import flashx.textLayout.elements.TextFlow;
    import flashx.textLayout.factory.StringTextLineFactory;
    import flashx.textLayout.formats.TextLayoutFormat;
    import flash.geom.Rectangle;
    import flash.display.Sprite;
    import flash.text.engine.TextLine;
   
    public class TCMTestFocus extends Sprite
    {
        public function TCMTestFocus():void{
           
            //title is a string brought from xml.           
                                            var    title:String = "Canazei סקי איטלקי במיטבו בעיירה";
            var titleLine:StringTextLineFactory = new StringTextLineFactory();           
            titleLine.text = title;
            titleLine.paragraphFormat
            titleLine.compositionBounds = new Rectangle(0,0,120,120);
            titleLine.spanFormat = formatMe(0x0000FF, 12, "bold");
            titleLine.createTextLines(callbackTitle);
           
            function callbackTitle(tl:TextLine):void{
               
                addChild(tl);               
        //        tl.y = 12;               
        //        tl.x = 109 - tl.width;
            }
           
           
           
        }
       
    public function formatMe(colour:uint, size:uint, weight:String):TextLayoutFormat{
           
            var characterFormat:TextLayoutFormat = new TextLayoutFormat();           
            characterFormat.fontSize = size;
            characterFormat.color = colour;
            characterFormat.direction = flashx.textLayout.formats.Direction.LTR;
            characterFormat.textAlign = flashx.textLayout.formats.TextAlign.START;
            characterFormat.fontFamily = "Arial, Helvetica, _sans";
            characterFormat.lineHeight = "100%";
           
            if (weight == "bold"){
                characterFormat.fontWeight = flash.text.engine.FontWeight.BOLD;
            }
           
            return characterFormat;
        }
    }
}