The problem I'm having is: I choose the text tool, click, I get no cursor just a tiny little square that does nothing, I try to type something and nothing appears. However, if I change tools, the text layer then displays what I typed, but it still doesn't appear on the image. I try to click and drag the text tool to create a box, then i get a cursor but it doesn't move and I just have the same problem.
The text color is not the same as the background, the text isn't too big or too small, and the text layer is set to visible.
Are you on Mac OS X? This is a wild guess, but maybe try repairing permissions. If you're not in the habit of repairing permissions, you need to do this daily, or, leave your computer running 24/7 so it'll automatically do this nightly. http://support.apple.com/kb/ht1452
Also, try trashing your preferences, or try re-installing your version of Creative Suite - and, if you had prior installations, try doing a clean uninstall of prior versions...and before and after any install, repair permissions.