§ 1. Open an image of your choice or create a new one as it is shown in the movie.

§ 2. In the Toolbox, select the Horizontal Type Tool. In the Options bar, define font face, size, color, and other options.

§ 3. Click there, where you want to add an inscription. There appears a blinking cursor and anchor point (that's why this typing method is referred to as "point mode"). Type something. In this mode, every time you need to start a new line you have to press [Enter] key. When ready, press [Ctrl+Enter] keys, choose some tool in the Toolbox, or click some other interface element to commit the typing and return to normal editing*.
*Most commands won't work until you exit the "type" mode.

§ 4. Hold your mouse button and drag with the Type Tool over your image - a bounding box appears. This typing method is known as "paragraph" mode. The entered text is automatically wrapped to fit the paragraph width, so you don't need to press [Enter] key to start a new line.

§ 5. To edit the created text, select a fragment with the Type Tool and change its content, or alter its parameters in the Options bar. To access advanced text settings, go to the Character or Paragraph palette.

§ 6. Look at the Layers palette (Window > Layers). Every text fragment you create appears there as a separate layer. Selecting a type layer in the palette lets you treat the contained text fragment as a whole. For instance, adjust font style, size, color, or alter paragraph alignment method.

Tip. All the typing tools are also available in Photoshop Elements. If you believe, Photoshop Elements lacks some important features, be sure to visit this page.