I don't think it's necessary to convert the text to outlines first. I think the text is still live even under the arch/envelope distortions, isn't it? Once you expand appearance it generates the outlines. As far as the .ttf fonts into Illustrator question, just do what you would normally do with any font. On a Mac, you can double click on the file and it will open up in FontBook on its own, and you can click the button that says "activate this font". For PCs, just place the file into your font folder (somewhere on the C drive).