I also looked for the Transparency Tool to add to the Tools, but I couldn't find it. Darn!
One thing on this text painting tutorial I couldn't follow. He or she would draw a shape with the Pen Tool, and then they would click on Selection up at the top and the shape would become a selection they could paint in. So, what tool were they using that had that Selection option?
I ended up making the layer a selection, which worked.