Eraser tool not working when brush or pencil mode is selected.

After I upgraded to Windows Photoshop seven. I have not been able to get the eraser tool to work in any other way except in block format.
I know that preserving transparency turned on needed to be used and that they have changed that now, but playing with that and other ways has not helped.
If any one has an Idea on how to make it work, I would really appreciated. Thank you
Will

Do you have a tablet? I discovered that my tablet's mouse doesn't erase anymore since I switched to
PS7. I absolutely need to use the stylus.

MrRetouch...

With your Eraser Tool selected, have a look at your Options Bar, up top. There's a little drop-down menu that you can use to select an eraser style.

Do you have a tablet? I discovered that my tablet's mouse doesn't erase anymore since I switched to PS7.

If it's a Wacom make sure you've added Photoshop to the application list. This will make the "eraser" on the end of your stylus work correctly.