I need a font or style that can be exploded in order to work on a CNC engraving machine.
Is there one available or an easy way to use the fonts supplied with Icad?

Go here and see if it helps you: http://www.cadopia.com/ubb/Forum5/HTML/000208.html

Is there a font are drawing with exploadable letters on the market that can be either loaded into Icad are put into a drawing as a block then exploaded?

The only CAD that I know of that implimented
characters with special "block" was GenericCAD.
Icad and Acad use compiled shape definitions
(SHX) files which can't be exploded directly.

I had placed the GenericCAD-style font support
on a wish list a long time ago. That implimentation
allowed fillable fonts as well as SHX-style
and you could create new fonts by simply drawing
them...Much better than the ACAD system.

This is one area where Icad could part ways
with Acad.