The most frequently asked question about Photoshop 4.0 is a question about type tool. Maybe people just don't have manual, maybe they don't read it - I don't know. In any case - here is some quick explanation on differences plus a couple of tricks on type tool in Photoshop 4.0

There are 2 modes now - outline mode and layer mode. The default is the layer mode. It's indicated with icon of filled A letter in the toolbox. Once you type something it automatically becomes a layer. This is very convinient and saves alot of time (I had to do it manually in previous version of Photoshop). If you want to use old filters in this layer, you would need a selection - this is not a problem. Don't be scared of layers if you aren't used to them - you can get selection around your type even if you are using layer mode type. To get this selection, while layer with type is active, do Select>Load Selection... and specify Layer X Transparency. Now you can use filters like Drop Shadow or whatever and even more - the shadow you will drop will be transparent too! This means you will be able to move text+shadow around the image. Once you find the right place for it, hit Ctrl-E and you get rid of unneeded layer (layers eat memory!).
Second mode is "selection" mode. It means that your type produces plain selection or mask. This mode is indicated by outline A letter in the toolbox. To switch modes click mouse button on the type tool and hold it unreleased for 2 seconds. Selection your produce is just a usual selection. You can move it around or fill with something.

© 1997 Nick Ustinov.