Are you doing this in Photoshop Elements or in Photoshop?
I use PEv.8. In order to make this work, I have to do the following:
These options are not available via the move tool on my system.
Be that as it may, it is an excellent technique.
Thanks for the great tips guys. PSE7 is the version I'm using, so I didn't do anything with the text layer. It worked great. I'm very PSE challenged....I was just telling my customer this morning how "I wish I knew how to get the darn text on a diagonal line". I gotta find a class ;-).