Since I don't use Suitcase, I can't say if that might be causing a problem.
The first thing to do is the same thing that's been done forever whne an app starts behavig bacly - trash your prefs. Quit AI and go to User/Library/Preferences - trash "com.adobe.illustrator.plist". launch AI and see if that helps.
Second, you could have a corrupted font cache. OSX uses caches of fonts rather than the original to prevent font corruption in teh case of a program crash. Go to Finder/Find. Use Name Contains as search parameter and search for "fnt". Trash anything that comes up with the ".lst" extension.
Using OSX 10.3.9 on a G4