Text tool: Text doesn't goto the next line

Hi,
I ran into a problem where my text doesn't go to the next line when I press ENTER.  If I keep on typing, the text would overwrite itself.
This is only happening in After Effects (it is fine in other apps...Email, Photoshop, etc.).  I know it is probably something I clicked but for the longest time, I couldn't figure it out.
Any help appreciated.

As Mylenium suggested, you may have a problem with line spacing. For example, you may have leading set to 0. One way to clear problematic settings is to reset the settings in the Character panel.

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