It will not work for TrueType fonts. There are several commercial font tools that can convert them to the Type1 format but the quality of the resulting fonts is far from stellar. Many Windows applications assume that fonts included in original Windows 3.1 distribution are always present. Also, no aliases are created for the fonts that applications install at runtime. Wine modified the second extracted name to make sure Windows programs can distinguish them because only extracted names appear in the font selection dialogs.
Wine discards an alias when it sees that the native X font is available.
Font table starts with Arial in most Windows installations, however X font table starts with whatever is the first line in the fonts.dir. Therefore WINE uses the following entry to determine which font to check first. This process can take a while. Windows programs may ask WINE to render a font with the height specified in points. In general, higher numbers give you larger fonts.