Problem with text in photoshop elements 7

I am trying to make a recipe book from odd fun food on-line.  Instead of typing all of the text in below the pictures of the food, I tried to copy it from the website and paste it onto photoshop 7.  I selected "new" and then tried to paste, the option wasn't there.  I then went back to the website and saved the text to my documents.  I named it "pop".  It was saved as "pop.txt".  I went back to photoshop and tried to open the file.  An error message appeared stating that "the file could not be opened because it is the wrong type of file".  I then went back to the website and copied the text once again and pasted it onto Microsoft Works Word Processor.  I saved it on there and it was saved as a ".wps" file.  Once again photoshop could not open it because "it was the wrong type of file".  All I want to to is to be able to copy text or a picture from a site or Word or whatever and then be able to paste it onto Photoshop Elements 7.  Is this possible? If so, please tell me how.  If not, please give me another alternative. I would appreciate it so very much! I have been trying to do this for 4 days now! Losing patience!!! Thank you!

You can use the type tool in photoshop elements 7.
1. copy your text as you did before. (i copied some your post)
2. In pse7, using the picture you want to paste the text in, select horizontal type tool.
3. Click on the image where you want your text (you can move the txt after you paste)
4. After you click on the image with the type tool, the cursor will blink.
   Just right click and select paste.
5. Now your text is pasted into a editable type layer, which can be changed just like
    any other type layer.
Hope this helps.
MTSTUNER

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