You need to install Chinese in Vista or XP, got the function, then a language bar will appear. The most traditional way is still Chinese PRC, use hanyu pinyin. Go to Control Panel --> Language/Regional Settings or something like that and fiddle around.
Then you can type in already, just need to switch language and know how to use hanyu pinyin to type.
I can't remember how I installed Chinese support on my laptop (it seems ages ago). Think I download a patch from Microsoft website (since my OS didn't come with Chinese support).
Once installed, alt+shift will toggle entry between Chinese (pinyin) and English. Once you are in pinyin mode, as you keep typing, the Chinese words will appear and you will have to pick and choose. quite easy actually, once you get the hang of it.
Did a google search just now and found this link. hope it helps...
yup you need to install east asian language support for your xp or vista and configure a input method for your pc.After that just startup photoshop,enable your chinese input and type away!here's a thread to help you