...faux styles can be found under the flyout menu of the character palette. with the underline issue, launch photoshop go to window > character, in the flyout menu make sure that underline is unticked, sounds to me this is currently defaulting, once unticked quit photoshop and relaunch to make sure is has stuck, then in theory all type will not be underlined...
...when dealing with type in photoshop make suer the anti-aliasing method is set to a method other than none, otherwise type will be jaggy when rasterized, this option however doesn't effect type when exported to pdf or vector eps as it is rendered using the outline of the type...
Andrew