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Text entry is now directly on the canvas, with the
character options on the new toolbar.

Wrapping text in Photoshop? You bet! Start counting
the number of keystrokes you will save with this feature alone.

Of course, we must not forget the text manipulation
with the Warp Text option.
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Kiss good-bye to the text entry window. Text is now entered directly
into the document. This is another of those things that can make the
world seem off balance for a few minutes after years of entering text
into a tiny box. It will only take a few minutes for the smile to appear
though. I don't care how good the preview capability was, there is nothing
that can compare to on-screen text editing. The line between vector
and raster graphic programs is becoming much less defined.
To make it even better, we come back to the toolbar. The controls for
your text are all right there for you. If you prefer, or if you must
add kerning or tracking to your text, you can activate the familiar
Character palette from the toolbar.
For a real treat, select your Text tool, then click and drag. An easily
resized text box appears ready for you to enter paragraph text that
wraps to the borders of the box. Edit text within the box by highlighting
text. You will also find a Paragraph palette within the toolbar with
indent, justification (full justification, too) and hyphenation controls.
In short, much like an illustration program.

When not in edit mode, text can be treated as any other object, including
transforming paragraph text. Text was one operation that would often
send me back to an illustration program. I suspect I will make fewer
trips now.

So what's missing from the text capabilities? Spell check. I hate to
think what results will come from paragraph text without a spell check.
Perhaps the next release?
But wait ... there is much more. Like vector objects, and I mean real
vectors, not just paths. Take a peek.
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