I figured it out somewhat by chance.
When I pasted the 2nd screenshot into a new layer, it was 'selected' and didn't 'deselect' when I added a new layer to put my text on.
I assumed that when I selected the text tool and clicked on the screen, the previous selection box would automatically be 'deselected'. I took a chance and hit the unselect icon on the menu bar and like magic, I could type new text again and have it visible.
Is there a reason that the program behaves in this fashion - a graphic design/artistic/editing reason that is? I would just like to know, as it seems unnatural to me.
-Scott