theWebMachine "Orbiting Type" tutorial problem

I was trying to reproduce the PS tutorial on theWebMachine about the Orbiting Type. It's the first tutorial in the Photoshop section.

There seems to be something missing there. As soon as I get to the part where I need to enter the text, my cursor doesn't change and if I type in any text, it doesn't follow the path.

Has anybody got a clue what could be wrong?
I am working with PS 7.0 b.t.w.

The webmachine just forgot to mention the 'shape type' to use whether it is a shape layer, paths, or fill pixels. You might be using a fill pixels when you draw the shape. To change that, click on the shape tool and at the right side of the options bar (options bar is located below the menu bar) you'll see a square with 4 circles in each corner(that's the shape layer) a square with an arrow inside (that's the path) and lastly the plain square(that's the fill pixels). If I'm not mistaken the webmachine might be using either a shape layer or a path

Thanks m8.
I do think however that it has to do with the fact that I am using PS 7.0 while this particular tutorial seems to be written for the CS version.