Using Photoshop CS5 on HP laptop with Windows 7. I've never had an issue with this before, but today when I opened up PS, this happened:
No matter what I set the leading to, there's always this humongous gap when I hit enter. Shift + enter makes no difference. Changing the font size also makes no difference.
Look in the Paragraph panel, and see if there's a non-zero value in Space Before or Space After.
Aha! That fixed it! Thank you so much!