Can only do one line of text. The carriage return/Enter key does not create a new line when building a paragraph? The cursor goes to the beginning or middle depending on how the justification is set.
There are two things going on here. First, your leading, the distance between the lines, should be set to Auto or adjusted to the size you want. Second, if you click and drag out a text area before you type AE will automatically wrap the text to fill the area just as it does in Photoshop.
I would start by clicking the little icon at the top right corner of the Character palette and then select Reset Character at the bottom of the list.
Thanks Rick I'm up and running!!