Photoshop :: Type/Carriage Return

adding text to an image.... No matter what text type, style or font I use, when I'm done with one line and carriage return to the next, the cursor doesn't go completely below the first line and the second line letters are typing half way into the line above it. What I'm having to do is hit reutrn twice. I'm assuming that this is a setting somewhere that I have accidentally enabled or disabled. I believe it's a setting in CS2 because I've opened a Word document and the return works there (I was thinking it was a setting on my machine, but this only happens with CS2).