After moving back to Mac from linux, I was frustrated by the fact that I couldn't get Hebrew to work correctly under emacs; I must have wasted at least half a day with no progress to show. Well not nothing -- I could type in Hebrew and save, but all I got in emacs was boxes. I'm not going to bore you with all the details of what didn't work.
I was finally able to get it (almost) working, but not by any credit to me. What you need is the Enhanced Carbon Emacs, and after that, the Hebrew worked with mule, the same as I had it under linux.
I have more detailed instructions on my mac.com page...

