PS Type Tool Problem

Hi, I have a problem with the type tool on Photoshop CS2. I'm new to Photoshop, so originally I thought it was just me being a bit slow, but I asked my friend who has been using Photoshop for a while and she said that it doesn't even look the same as hers. When I click the type tool and make a box on the image, no cursor is shown and what I type doesn't show up on the image. The text I type is always in a readable font, at size 12 or larger and in a clear colour. As soon as I deselect the layer, the layer is renamed to what I tried to type onto the image.

I have read online that a few people have been having similar problems, and someone suggested (to someone else, not me) to reset the preferences by holding control+shift+alt as PS started up, but I have done this and it is still not working. The only other thing I have seen is people suggesting reinstalling Photoshop, but I have read that this doesn't correct the problem either.

Sorry that I'm not very good at explaining things... please, someone help me if you can. Thanks.