Photoshop CS2 - Text tool doesnt work

[LeftEyeNine]

What page size and units are you using? I sounds like you might be working on a huge workspace size for some reason or other.

Ditto. Your document may be one with a very high resolution such as 300 dpi, whereas while copy-pasting a text from 300-dpi document to a normal one like 74 dpi, you may be getting ridiculous size.

[Tamur]

The problem I usually have is the opposite -- 1 ppi on document open, but 300pt text shows up as very tiny hen scratches. CS2 seems to have horrendous default settings for DPI and pixel aspect ratio when opening documents. Hopefully this is an annoyance Adobe will fix with CS3 (not that I'll know for a while).

At any rate, LEN and Cambyses are definitely right, it's all down to the dpi/ppi setting you use.