photoshop text problem

Hi everyone,

I had a weird thing happen to my photoshop 7 (legal) a couple days ago that apparently won't go away. Whenever I make an icon, I do all the usual things (crop, color) and then add text. Most often I have to move the text around on the icon, or I need to change the angle--do something to it. However, NOW, when I use the move tool and click on my text layer to drag around, the layer on the side bar (which is selected) is moved to the layer below it. So, when I click and drag, I'm not moving my text layer, but whatever is underneath it. Which renders my text layer pretty much unmovable.

I've tried everything I could think of, hiding the layer below the text, making the text layer into a regular one by merging down, and as far as I know all of my settings are usual.

Does anyone know how to fix this? I'm pretty much stuck on all graphics I'm working on. I've checked the memories, etc. etc. on here but didn't see anyone with this issue.

Thank you for anyone who can help.