[OS X TeX] Malayalam and other Indian languages on Mac

[NMPOST7]

Good Day to all,

back again after succeeding.

The Malayalam part functions fine (except for a few ligatures!)
However, the new problem is, I cannot use accents!!!

Here an example

\documentclass[dvips]{article}
\usepackage{fontspec}
\setmainfont[Script=Malayalam]{AnjaliOldLipi}
\begin{document}
മലയാളം    malay\=alam
\end{document}


when compiled the Malayalam letters remain. The other letters are in sans serif
 but the accent disappears! :(

cheers
suren