What's happening in your case is that utf8x defines (for instance) the letter स as \textdevanagarisa. I think that in turn is meant to be used with the LDV font encoding, which tries to use arialuni090t, and… it's all a mess.
Instead, just use XeTeX, with any font of your choice — compile the following with xelatex:
\documentclass[12pt]{article}
\usepackage{fontspec}
\setmainfont{Arial Unicode MS} % Or any font of your choice, which covers Devanagari
\tracinglostchars=2 % Usability bug in TeX: https://tex.stackexchange.com/q/41230/48
\begin{document}
स्कूल
\end{document}
You can use any system font that covers the Devanagari characters that you care about. (Also, you may want to pass [Script=Devanagari] to \setmainfont.) If your document contains a mixture of Devanagari and non-Devanagari (English, say) text, then you can use the polyglossia package and switch between languages when necessary, etc.