One issue with tools like the Photoshop Type tool is that it remembers the settings from last time you used it. Sometimes this is a good thing, most often it is not.
If you need to reset the tool or its associated Character or Paragraph palette options, click the tool or palette and from the appropriate flyout menu (the Type tool’s flyout menu is in the top right corner of the Tool Presets dialog), choose Reset Tool.
Make sure you don’t have a text layer selected when you do this if you don’t want its settings changed to match the reset options.