How do I turn off this setting?

AHH... Somehow I clicked something in Photoshop.. that now.. I open a new document. I try to make a layer of text (or anything), and as soon as I'm finished, all the letters are outlined.. much like when you magic wand something. and the dotted line border wont go away! I know that the select arrow is clicked and I'm not just.. not paying attention and clicking the wrong tool.. I changed an actual setting somewhere.. it will NOT let me create a new layer.. everything goes straight to the background layer. I have no idea what I might have done, and no idea how to get out of this! Please help me!

sorry for taking up space.. it was on bitmap... i dont know why. when i switched back to rgb it was fine. sorry about that but i had some stuff to do.. peaceout!

If you still haven't figured out the type tool problem, it's because you selected 'Type Mask' in the type toolbar. Select the type tool, and below the File and Edit menu, you should find a couple of buttons. Make sure the Type Mask isn't selected.
In CS, you have to pick the Type Tool via the toolbar.