OKay, either you're using an ancient version of Photoshop or your computer is getting senile, because it should NOT be crashig that often. You CAN adjust the sensitivity of the magic wand, there should be a box with a number on it somewhere (it's different depending what version you have). If you tell me which version you've got I can help you out with most of your problems. =)

Also, check out www.dafonts.com for a huge database of every font you could imagine. For small text, try "Homespun," that's what I usually use. Also, your computer should come with "Small Fonts" and PSP usually includes 'Photoshop Small."