PS7 HELP NEEDED: TEXT NOT SHOWING UP

I am using PS7, and I'm having my first major minor problem.

No matter what font I use or what point I set it as, the cursor comes up sooo teeny, and the font isn't showing up. This has happened last night and now this morning. I've restarted my computer, and cleared my files. What else can I do? Is it something with my image? I'm still kinda new to PS, so it may just be something simple.

Oh, another thing...
Is there anyway to get the outline to go away when you open up an image? It doesn't really bother me, I was just curious. It's not the 'extras' outline, but the actual outline PS puts around every image I work on or open.

Thanks!