When you type text and select another tool does the text layer in the layer palette have the first few words of text in it?
If it does try double clicking the 'T' in the layers palette(to select the text) and then increasing the font size (the maximum is 1296 pt, but you can use the transform tool on it after - when you can see it).
Moe: It could have been a real ugly situation, but luckily I managed to shoot him in the spine.
It's more than likely something in your character palette with a value to high. Select your text box and check things like Tracking: if the value is very high, set it to the same size as your type. Check the Baseline shift, change it to 0 if it as anything else etc.
(Either that or your text is the same colour as your background!!!??? Nah, couldn't be that obvious)
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