PS CS3 Text question

Hey guys,



I'm making an avatar at the moment, but for some reason when I go to add text on the image, no text is shown and the layer panel on the far right indicates what I've wrote, but I see no effects or changes. How do I resolve this?

(I cropped the image, resized, saved it, re-opened it back up, put a smidgen of red brush effect where the text would be going, and then went onto the text tool.)