Photoshop is a wonderful program that in the last few years has expanded the capabilities of the designer tremendously. But it is not the place to set type. When working with type the objective is to have clear crisp letters that the audience will be able to easily read. Unfortunately Photoshop is incapable of producing this kind of lettering. The only exception to this should be when you are applying effects to DISPLAY type in Photoshop, such as beveling, embossing, inner glows etc. These effects should not be applied to regular body copy.
As we explained above Photoshop renders files as small squares of color. When type is set in Photoshop it too is rendered of those same small squares.
When that file is then sent to the printing press it is converted to small dots of black and white. These dots will cause the type to look fuzzy and gray.
It is best to set type in a page layout program like Quark or InDesign where it will be sent to the press as vector information. Adobe Illustrator too is an acceptable program for setting type.