Dannii, the option is located in the "brush" palette. i guess the one thing that seems confusing with PS7 is that the settings don't appear unless you click on the words themselves. If you just check the "check-box" (1) you use the settings that are already in place. If you select the words (2) and thus hightlight the control, you can adjust the settings to your satisfaction.

As for custom brushes, you can load them by clicking the little arrow at the upper right of the "brush" palette (3) and selecting LOAD BRUSHES...

to make it easier make sure your brushes (.abr) are placed in the PRESET --> BRUSHES directory.

let us know if this helps,
:)
retrocity