Extremely Weird Photoshop Issue

[nalandial]

Just a heads up: I'm not a graphics designer, I'm a software engineer, but I've messed around enough with Photoshop to be able to get what I need done. I sent this to the graphics people at my company and they didn't know what was causing the issue.

With this file, and ONLY with this file, any new text I make is EXTREMELY small. Making the font 1200pt makes it look like it's about 30-40ish. I could only do this in PS7 though. In CS3, it wouldn't let me make the font above 18px. Period.

Originally it was a picture from a video game, but the content doesn't seem to matter. I just painted over it black and got the same issue with two different people, on 7 and CS3.

It makes no sense to me whatsoever. The file has been sent through e-mail and MSN, so it's something about THIS SPECIFIC JPG that is goofing up photoshop.

In CS3 I was able to Place it in a new file and make text of any size, however in PS7 when I tried to select all and make a new file and paste the contents in there, I got the same font issue. Point being, yes the issue can be worked around a number of ways, but I am just really interested to see if anyone can figure out why this is happening.

The file I'm talking about is attached here.

Thanks in advance!

[Varelse]

Width: 1524cm
Height: 927.1cm
Resolution: 1pixel/inch

What can you do?

1. Change the image resolution to 72 dpi WITHOUT resampling it (uncheck this box)
or
2. Change font units to pixels instead of points.