Text question for Photoshop 7

I found a lovely text on a path tutorial. Unfortunately, one step in the process doesn't work for me. I'm hoping someone here might know why. After using the Pen Tool to lay out the guideline I want my text to follow, I select the Text Tool and move it over the guideline and hope that the cursor will, as the tutorial says, "changes from normal to having a diagonal line running across the bottom of it." Because I really want to, "click once and a blinking cursor will come up. Type in the text that you want to conform to the shape of the path and watch the magic happen."

It doesn't. What am I doing wrong?