Jagged edges arounds all fonts in Photoshop

For some reason all my fonts in Photoshop CS3 have jagged edges around them. When you move the text the edges move around.The only change I can get is when I change the options in the text menu from "crisp" or "smooth" or any of the other options to "none" but none only reduces the jagged edges but it does not eliminate them. I opened up Illustrator CS3 and all the fonts are displaying properly plus they show up just fine in After Effects CS3 as well. I had this problem last year in Photoshop CS2 but I can't remember how I fixed it. I'm sure its something simple I'm just overlooking.

Any help is greatly appreciated.

Eureka! Thanks for the tip! I knew it was something simple that I was overlooking. I checked the dpi on the file I was working with, and for some reason the background pic was at 150 dpi. I tried starting the project over this morning with 72 & 300 dpi and viola! Crisp, sharp fonts like they should be. Thanks again for the help!

when you open a new document inside photoshop, one of the settings is "resolution"... that's your dpi. 72 for web, 300 for print and 150 can go either way.

I think you have to transfer it. Just pull your layers onto a new doc.