Use the Text tool to create text in an image. Choose text colors on the Materials palette and text options on the Tool Options palette, and then click in the image and enter text in the Text Entry dialog.
Be aware that if you have vector objects in your image (objects created with the Pen, Ellipse, Rectangle, Symmetric Shape, or Preset Shape tools), the behavior of the Text tool will be as follows:
To place text on the image (text not fit to a vector path), do not click near a path.
To place text on a vector object or path without attaching to the object or path, hold down the Alt key and click.
To place text on a vector
object or path, place the Text tool cursor on top of the object or path
(the cursor shape will change to 
) and click. See Creating
Text on Object Paths for more information.
To create text:
On the Tools toolbar, choose
the Text tool 
.
On the Materials palette, make the desired Foreground/Stroke property and Background/Fill property settings. The foreground setting determines the text outline, while the background setting determines the text fill (the area within characters). See Basics of Using the Materials palette.
For standard text with no outline, set the Stroke width on the Tool Options palette to 0, or click the Foreground/Stroke property's Transparent button.
For hollow text, click the Background/Fill property's Transparent button.
On the Tool Options palette's Create as drop-list, choose the type of text:
Vector creates vector text that resides on a vector layer. This is the most editable form of text.
Selection creates a selection marquee in the shape of the text characters. You can treat the selection as you would any made from the Selection tools in that it can be moved, copied, filled, etc. This form of text is not vector-based.
Floating creates raster text that is a floating selection. Ideally you should place this type of text on it's own raster layer, otherwise it is merged with the current layer and would be difficult to edit. For more information, see About Vector, Floating, and Selection Text.
Choose a text direction in the Direction drop-list:
Horizontal
and Down 
: this creates "normal" text
where subsequent lines are placed below the top text line.
Vertical
and Left 
: this places each character vertically,
but subsequent lines are placed to the left of the top line.
Vertical
and Right 
: this places each character vertically,
but subsequent lines are placed to the right of the top line.
Choose the basic text formatting options, including Font, Size, Stroke width (if you're using a Foreground/Stroke in the Materials palette), Font style, and Alignment. See Formatting Text.
Note: For the Size setting, the only way to guarantee true WYSIWYG text is if your image resolution is equal to your printing resolution. Click here for more information.
Choose an Anti-alias option from the Anti-alias drop list:
Off applies no anti-aliasing.
Sharp applies a slight edge enhancement to the text.
Smooth applies a slight filtering effect similar to removing a moire pattern.
Optionally, you can choose a Line Style (affects only the stroke) as well as Join and Miter settings. Normal text uses the default line style labeled +Solid in the Line Style drop list.
The Warp check box affects text fit to a path. When marked, the text will "warp" around the curves of the path (if the path is not curved, you won't see the effect). Also, be aware that warping is set on a per-character basis, so part of a text block can be warped and part will appear unwarped. When this option is not marked, the text fits on the path in a more straight manner.
The Offset setting allows you to define the distance between the text and the path it is fit to. This setting will have no effect for text not fit to a path.
The last Text tool options include:
Leading: Sets the vertical space between text lines.
Kerning: Sets the horizontal space between characters. Kerning values are expressed as 1.000 being equal to one EM.
Auto kern check box: Mark this option to factor in the font's built-in kerning values.
Tracking: Lets you set an equal amount of space across selected characters.
Once all your Tool Options are ready, click in the image where you want to place the text. The Text Entry dialog opens. Note the following points regarding where you click to place the text:
To place text on the image (text not fit to a vector path), do not click near a path.
To place text on a vector object or path without attaching to the object or path, hold down the Alt key and click.
To place text
on a vector object or path, place the Text tool cursor on top of the object
or path (the cursor shape will change to ) and click. See
Creating Text on Object Paths
for more information.
Type the text. As you type in the dialog, the text displays on the image. To add a line break, press Enter.
To change any of the text formatting options, in the Text Entry dialog, highlight the words or characters that you want to change, and then make changes on the Tool Options palette. For more information about editing, see Editing Text.
Mark the Remember Text check box to display the entered text the next time you open the Text Entry dialog.
Click Apply. The text displays on the image. If you've added vector text, note also that this will be reflected in the Layers palette.
About Vector Floating and Selection Text
Aligning and Spacing Text on Object Paths
Creating Text with Image Patterns