Text problem !!!!

Freezframe

When trying to do live text I can't change fonts size.After clicking T for text- I'm clicking inside layer (picture) and what I get is a small black box about 1/16" squared ...If you look hard you can see the text within this tiny square..I'm stumped ....Never had this problem before .The layer in which I"m adding text too a psd or jpeg which made know difference ...

I got something check that I shouldn't have but what ????

Any Ideas : Brady :scratch