Why won't it let me type text anymore?

Hi, I was wondering if you guys could help me?
I've recently aquired Photoshop Elements, and I had been making icons with it fine, but then one day when I opened it up it wouldnt let me put text on my pictures anymore!! It puts this red layer over my picture, and then sort of cuts the text into the picture (if that makes sense to anyone but me). I can still put text vertically though!! I havn't changed anything, so I don't know what's going on.
Please help me!! I really need the text tool back!!