Putting Text into small JPG Images(16x12)

Hey guys, I am a bit knew to photoshop.. Atm I am using photoshop CS2 and I am having some difficulty putting text into an image that is 16 x 12 BMP format 256 colours, When I make a new layer and then click the T tool I type in the text that I wanna put in and then go to another tool and the text isn't showing up no matter what size I put it on, please help lol.

If your wondering what the image is for, it's for a video game which is why it's so small.

You wont get very much text on a 16 x 12 image. Maybe one letter only.

In the example shown below, the image is 16 x 12 @ 3 pixels per inch and the text is 300 point.

Is this the sort of thing you are trying to do?

I make the 16 x 12 image and then I try to put text into it, and it isn't working. But i'll try your way, Ty.