lemmi clarify. u copy fonts the way u would any other fonts, into ur windows font's folder. you dont need to copy new fonts if ur okay with the fonts which came when u installed ur OS (if at all u selected that option).
PS is not the programme u would use to enter the chinese text, but it can recognise and read chinese text. the programme to type out the text, would be a seperate chinese programme.
im asumming u already have a prog to write chinese, since u are able to copy over to PS from word?
PS7 shouldnt be a problem, if i recall correctly, i did do some chinese stuff on ps7 also.
hope it helps