I'm a newbie to Photoshop. I must have hit a button because everything is now black and white! when i choose a color, it is gray as well.
Go to "Image -> Mode -> RGB". More then likely you have it on Grayscale, or Index color mode. It took me forever to figure this out when I first started too.
Haha yeah, it happened a few times to me while using PS 7 (my fav =) ) that the color mode switches automatically... weird, but true. just change it to RGB and you're done.
If you play around with setting and something happen but you have no idea how to fix it, just close the Photoshop and when you switch it on again immediately press SHIFT + ALT + CONTROL. Photoshop will ask you if you want to delete current settings. Just click Yes and it will use its defaults. Then everything should work fine and you can start playing around again
It can also be changed when you open a new canvas. File > New The popup has the option, mines sometimes accidently goes to greyscale at time. The resolution also might change from 72 so watch out for that aswell!