Question

I have  question for you all. I use Adobe Photoshop 7 and I am having trouble with my text tool. When I click on the picture to type, the little flashy white bar (sorry, I don't know what its called) shows up. But, the text is tiny. Even if I make the font size 72, its still tiny. How can I fix this?!?! Any help you could give me would be great! Thanks in afvance!