Dot, I hadn't really checked statuses very often before. I'll have to try to remember to do that from now on!
I'm glad you're having fun with this tut. Like I said, it's one of my favorites.
If these directions were more clear, I can update the tutorial in the University with these. What do you think?
Dot, I do think the type needs to be rasterized before you can do things this way. Raster images are pixel images. Normal type images are vectors, meaning they're created with "outlines" more than pixels that fill in the space. The program can't create a break in a vector image without redrawing the vector, and that usually requires the Pen Tool (or its assorted paraphernalia). Pixels are easy to move around though.
When I do this kind of detail work, I always look at things in 100% mode (probably using your technique from now on, Dot!). At 100%, you can see the "true" image and not the generated, not-necessarily-true-to-life-image-that-the-program-creates-to-fit-in-your-screen. You can see what layer styles (shadows included!), actual pixels, etc. will look like this way. So what may have happened with your layout, Dot, is things didn't look one way but actually did move, but you just couldn't tell based on your zoom level.
Just some thoughts!