TIP: Text block of a specific size

Clicking and dragging with the Type tool will create a text block so your type will automatically wrap around to the next line (and you can resize the box)
If you need a text block in a specific size, just hold down Option (PC: Alt) and click once with the Type tool. A dialog will appear waiting for you to input the size of the text block you want. It defaults to pixels but you can enter in inches if you like - just enter "2 in".