I hear Photoshop elements 2.0 is similar to photoshop 7.0 its just... simpler. I think I may be able to help you out.
I assume you have the text on a seperate layer, select it and make it your active layer. Then go to "Layers" > "Layer Style" > click on "Stroke" a menu should appear.
from there *if you have it* you'll be able to add a nifty outline. Fully customizable of course! Ah well, I hope that helped.
Am I back? My search continues.