I have photoshop elements version 8 and I am trying to edit text that is in a JPG file. The text selection tool only lets me create new text. I believe I might ned to edit within the layers but I need some specifics on how to get there and what to do. Many thanks.
There is no text selection tool, just horizontal type, vertical type, horizontal type mask, veritical type mask tools.
If you have JPEG file, that implies that the layers have been flatened, and are not editable
If you saved your work in a format that supports layers, then you can can edit the layers.
If you have a file with the layer structure intact and you want to replace the text, I suggest that you delete the text layer and create a replacement.
If I understand your problem - you are in Elements Organizer and have photos with text, and you wish to edit the text. If so, piece o cake. Bring the photo up full page and will see the text below the photo. Click on the text. You will then get a highlighted bar across the screen. Do your editing, then sync the photo with your website. The update will be both on your computer and on the website...at least, mine were.
I had this same problem. What appears to have happened is that I somehow simplified the layer. This can be done by right clicking on the layer in the layers panel and choosing simplify. I don't remember having done this, but I must have because a) there was no "T" in the layer icon in the layer panel and b) the "simplify" option was greyed out when I right clicked on the layer.
My solution was to delete that layer and create a new text layer. I was careful not to simplify the layer and now I can go back whenever I want by clicking on the layer in the layers panel and then clicking on the text tool in the tool panel.
Hope this works for you.