The limitations of text based special effects are dependant on what program you are using and the effect you are trying to achieve. For examples of these, I recommend following the "Related Link" below to a Google search of "Photoshop text effects".
There are a number of websites where one can find a Photoshop text tutorial including Smashing Magazine, Hongkiat, Web Design, Photoshop Essentials and Photoshop Lady.
No, Photoshop Elements does not have Contour.
Text in Photoshop is vector object, so you can scale, rotate, change size, color without losing quality.
Adobe photoshop is a powerful image editing suite that lets yoou do all sorts of crazy things with photographs including tweaking colour, adding effects, adding text and many many more.
Photoshop have Horizontal Type Tool and Horizontal Type Mask Tool which you can use to type text in Photoshop.
One can change the font or text color in Photoshop by first clicking the Text tool button. Then when the Text toolbar appears, click the color palette button and select the color wanted.
Photoshop if you want to get fancy, but just to add text, use google's picasa.
You can't add effects on text, but you can animate the text.
Create a text layer, type out your text, then click the checkmark to confirm you're finished writing. Then double-click to the right of the layer name to open up the Layer Style window from which you can apply various effects. You can also apply other effects to your text by using Filters from the Filter menu, but you will first need to rastarize the layer. You can rastarize a layer by right clicking on it in the Layers pallate, then selecting rastarize from the pop-up menu; photoshop should also ask you if you want to rastarize the layer if you try to apply a filter to a layer that hasn't been rastarized yet. Make sure your text is exactly as you want it or create a duplicate layer before rastarizing. Once you rastarize the layer, you will no longer be able to change the spelling or wording with the text tool.
You can. The icon in the toolbar is a big T.
Wrap option in Photoshop allow you to distort pixel based and vector objects. This option is mainly present in Photoshop for curvature distortions of pixels, text or vector shapes.