font, problem

Hello, Can anyone help please. I am trying to make a small business card size type of thing, 6cm x 3cm. I have put my image (jpg) on and I am trying to get some text on the work. The problem is that the text is coming out zig zag on letters like x, w, z, m etc. The straight letters are fine. I have tried all the different fonts, and sizes have tried putting the text in larger than required then free transforming. Nothing seems to work. I am now wondering if I will have to save the work then load it into another programme to get the text in. I am using Photoshop ver 7.
Thanks in anticicipation.

Okay first of all, images or things like business cards for print, shoud be made in CMYK mode, just convet your .jpg image to it, and then save it as .TIFF - Second, Photoshop is really not the best program for making these kind of things, I think Adobe InDesign is much better - it's a program you use, when you need to make something that needs to be printed, like business cards, posters, folders, flyers all of that.
If I were you I'd get that program, and make the business card in there. And all the other things you might want to make in the future
If you only want to use Photoshop, then you should know that text is a vector-based object, meaning that it can be resized without it showing all these pixels when it's being printed - it work in shapes, therefore, you need to save the dokument as a file, that read's and saves vector - like .TIFF ...
Try to go to "Layer - Type - Convert To Shape" they your letters will be great (I hope)
Also if you don't want a shape - then when you write the text in Photoshop, try selecting "smooth" as the anti-aliasing method, it will try to stabilize these letters . so they do not look all zig zag
Try some of the things out, I recommend InDesign though

Thank you so much Pixelchick for a great reply, I will go and try your advice out now. John.

Your welcome

also try not to rasterize your text (keep in in its native vector format) for print